Government tightens wheat stock limits amid rising prices
As per the revised limits, traders and wholesalers can now hold a maximum of 250 tonnes of wheat—down from the previous limit of 1,000 tonnes. Similarly, retailers can stock up to 4 tonnes per retail outlet, reduced from the earlier cap of 5 tonnes.
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In a bid to stabilize wheat prices, the central government has further tightened wheat stock-holding limits. Despite the increasing supply of food grain by the Food Corporation of India (FCI) through the Open Market Sale Scheme, wheat prices have shown little signs of easing, prompting the government to take stricter measures under the Essential Commodities Act.
As per the revised limits, which will remain in force until March 31, 2025, traders and wholesalers can now hold a maximum of 250 tonnes of wheat—down from the previous limit of 1,000 tonnes. Similarly, retailers can stock up to 4 tonnes per retail outlet, reduced from the earlier cap of 5 tonnes. There is no change in the wheat stock limit for processors.
In order to manage the overall food security, and to prevent hoarding and unscrupulous speculation, the Government of India imposed stock limits on Wheat, said a Food Ministry press release.
To ensure compliance, all wheat stocking entities must register on the wheat stock limit portal (https://evegoils.nic.in/wsp/login) and update their stock position every Friday. Any violation of these limits will attract punitive action under Essential Commodities Act, 1955. Entities holding stocks exceeding the prescribed limits must bring them within the permissible level within 15 days of the notification.
The government has reiterated that these measures are aimed at ensuring price stability for the consumers in the country. With a recorded wheat production of 1,132 lakh metric tonnes (LMT) during the Rabi 2024 season, the Food Ministry maintains that the country has ample wheat supplies.
Despite claims of record production, persistently high wheat prices and the imposition of stock limits raise questions about government production estimates.
