Government tightens wheat stock limits for price stability

As part of continuous efforts to moderate prices of wheat, the central government has decided to revise the wheat stock limit applicable until 31st March 2025. A total production of 1132 LMT of wheat was recorded during Rabi 2024, indicating sufficient availability of wheat in the country.

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The Government of India has revised wheat stock limits for traders, wholesalers, retailers, big chain retailers, and processors across all States and Union Territories, effective until March 31, 2025. 

For processors, the stock limit was reduced to 50% of Monthly Installed Capacity (MIC) multiplied by the remaining months till April 2025, down from the earlier 60%. For traders and wholesalers, the limit has been halved to 1,000 MT from 2,000 MT. Retailers can now stock up to 5 MT per outlet, reduced from 10 MT, while big retail chains are allowed 5 MT per outlet, with a maximum cumulative stock limit calculated as 5 MT multiplied by the total number of outlets.

The government reported a robust wheat production of 1,132 LMT during Rabi 2024, indicating ample availability. As per the statement by the Ministry of Consumer Affairs, Food and Public Distribution, “Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act, 1955.” 

The revisions aim to ensure price stability and equitable distribution of wheat. All wheat stockholders must register on the wheat stock limit portal and update their stock every Friday. Entities holding stocks above the prescribed limits must comply within 15 days of the notification.