Govt Reduces Stock Limits For Wheat Traders, Wholesalers Amid Rising Prices

Under the revised regulations, the wheat stock limit for traders and wholesalers has been reduced from 3000 metric tons (MT) to 2000 MT. Big chain retailers are now allowed to stock 10 MT of wheat

In an effort to manage food security and curb hoarding, the central government on Thursday revised stock limits on wheat traders, wholesalers, retailers, big chain retailers, and processors across all states and Union territories. The move came in response to rising wheat prices, aiming to ensure the availability of this essential commodity and prevent market speculation. 

Under the revised regulations, the wheat stock limit for traders and wholesalers has been reduced from 3000 metric tons (MT) to 2000 MT. Big chain retailers are now allowed to stock 10 MT of wheat at each outlet and 2000 MT at all their depots. Notably, the "Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023," initially issued on June 12, 2023, and applicable until March 31, 2024, covers all states and union territories. 

Secretary for Food and Public Distribution Sanjeev Chopra on Thursday told news agency PTI that the latest move has been taken keeping in view of the uptick in prices. He also said, "There won't be sharp upswing in retail prices of wheat, rice, sugar, edible oils in upcoming festival season."

An official statement by the Ministry of Consumer Affairs, Food & Public Distribution said, "In case the stocks held by above entities are higher than the above prescribed limit, they shall have to bring the same to the prescribed stock limits within 30 days of issue of the notification. Officials of Central and State Governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country."

Notably, the wholesale price-based inflation data numbers released on Thursday showed that the Wholesale Price Index (WPI) stood at -0.52 per cent in August. The WPI inflation rate has been consistently negative since April. The data revealed that inflation in food articles remained in double digits at 10.60 per cent in August, though it marked a decrease from the 14.25 per cent recorded in July.

In August, the Consumer Price Index (CPI)-based inflation, often referred to as retail inflation, stood at 6.83 per cent. This marked a decrease from the high of 7.44 per cent recorded in July, according to data released by the National Statistical Office (NSO).