Revised Wheat Stock Limits for Traders/ Wholesalers, Retailers, Big Chain Retailers and Processors

The Government of India has revised the stock limits on wheat, affecting traders, wholesalers, retailers, big chain retailers, and processors across all States and Union Territories. A press release on the revised limits was issued on December 8, 2023.

It may be recalled that the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023, issued on 12 June 2023. It will remain in effect until 31st March 2024.

As part of ongoing efforts to stabilize wheat prices, the Central Government has announced a revision to the wheat stock limits for various entities, effective immediately. The revised stock limits are as follows:

EntitiesExisting Wheat Stock LimitRevised Wheat Stock Limit
Traders/Wholesalers2000 MT1000 MT
Retailers10 MT for each Retail outlet5 MT for each Retail outlet
Big Chain Retailers10 MT for each outlet and 2000 MT at all their depot5 MT for each outlet and 1000 MT at all their depot
Processors75% of annual installed capacity or quantity equivalent to monthly installed capacity multiplied by remaining months of 2023-24, whichever is less70% of monthly installed capacity multiplied by remaining months of 2023-24

Entities involved in wheat stocking are required to register on the wheat stock limit portal and update their stock positions every Friday. Failure to register or comply with the stock limits may result in punitive action under the Essential Commodities Act, 1955.

Entities exceeding the prescribed limits are mandated to bring their stocks within the limits within 30 days of the notification. Central and State Government officials will closely monitor and enforce these stock limits to prevent any artificial scarcity of wheat.

Simultaneously, the government has implemented measures under the Open Market Sale Scheme (Domestic) [OMSS(D)]. The Food Corporation of India (FCI) has allocated 101.5 LMT of wheat at a subsidized price of Rs. 2150/quintal for calibrated release into the domestic open market through weekly e-auctions. An additional 25 LMT can be offloaded under OMSS during Jan-Mar 2024, depending on requirements. To date, 44.65 LMT has been offloaded through weekly e-auctions, increasing wheat availability at affordable prices.

To further boost supplies in the open market, the weekly quantity offered through e-auction by FCI has been increased from 3 LMT to 4 LMT. FCI is also providing wheat to Central Co-operative organizations for processing into atta and sale under the ‘Bharat Atta’ brand, aiming to make wheat available at an affordable price of Rs. 27.50/kg.

The Department of Food and Public Distribution is actively monitoring the wheat stock position to regulate prices and ensure ample availability across the country.

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