Government Imposes Stock Limits on Wheat to Control Prices and Prevent Hoarding
In a bid to ensure food security and curb price hikes, the Government of India has imposed stock limits on wheat across the country. This move comes into effect immediately from June 24, 2024 and will remain in place until March 31, 2025. The new limits apply to traders, wholesalers, retailers, big chain retailers, and processors across all states and union territories.
Government Monitors Wheat Prices To Prevent Hoarding Of Stocks
The Department of Food and Public Distribution is closely monitoring wheat prices to ensure market stability and prevent hoarding. As of January 1, 2024, wheat stocks were well above the prescribed buffer norm. Currently, there are no plans to alter import duties on wheat.
Food Corporation of India Boosts Market Supply of Wheat & Rice
The government, in its latest initiative, has allocated 101.5 LMT (Lakh Metric Tonnes) of wheat for offloading under the Open Market Sales Scheme (Domestic). The reserve price for both FAQ wheat and URS wheat has been set at Rs. 2150/Qtl and Rs. 2125/Qtl, respectively. Since the commencement of the offloading on June 28, 2023, a total of 25 e-auctions have been conducted, resulting in the sale of 48.12 LMT of wheat in the open market.
Revised Wheat Stock Limits for Traders/ Wholesalers, Retailers, Big Chain Retailers and Processors
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.
Central Government further regulates Wheat Stock Limits
This amendment aims to regulate and maintain appropriate stock levels of wheat across the country. It is essential for all stakeholders, including traders, retailers, big chain retailers, and processors, to adhere to these revised stock limits. The amended provisions will remain in effect until March 31, 2024.
