Govt imposes stock limit on wheat till FY24

The government put stock restrictions on wheat in an effort to prevent stockpiling and rein in the important commodity’s soaring price. 

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For the first time in 15 years, the government put immediate stock restrictions on wheat through March 2024 in an effort to prevent stockpiling and rein in the important commodity’s soaring price.

Wheat traders and wholesalers are limited to holding 3,000 metric tons; retailers are restricted to 10 metric tons; and large chain stores have a limit of 10 metric tons per location, with depots allowed a total of 3,000 metric tons. Processors can operate at 75% of their annual capacity.

Sanjeev Chopra, the food secretary, gave an interview to the media and explained that the wheat stock limit was put in place because “unscrupulous elements are holding the stock and creating artificial scarcity,” which has caused mandi prices to rise by roughly 8% over the past month.

On June 7, Mandi’s wheat prices increased to Rs 2,302 per quintal from Rs 2,129 per quintal the previous month.
The government will sell 15 lakh metric tons of wheat through the Open Market Sale Scheme (OMSS) to consumers and traders by month’s end. The quantity of rice to be sold will be decided later.

The government has confirmed that it will maintain import restrictions on wheat as long as the supply is deemed adequate. To regulate prices, a stock limit on wheat has been imposed until March 2024, shortly before the upcoming general elections, reinstating a measure last implemented in 2008.