Centre tightens wheat stock limits to curb hoarding, stabilise prices

The Centre on Wednesday revised wheat stock limits for traders, retailers, big chain retailers, and processors to curb hoarding and ensure price stability.

Under the revised limits, traders and wholesalers can now hold a maximum of 1,000 tonnes of wheat, down from 2,000 tonnes.

For retailers, the stock limit has been halved to 5 tonnes per outlet. Big chain retailers can store up to 10 tonnes per outlet and a cumulative stock equivalent to 10 tonnes per outlet across their depots.

Processors will now be allowed to stock 50% of their monthly installed capacity (MIC) multiplied by the remaining months of the financial year, reduced from the earlier cap of 60% of MIC. The revised stock limits will remain in force until March 31, 2025.

The move comes in the backdrop of a wheat production of 113.2 million tonnes during the Rabi season, the ministry of consumer affairs, food, and public distribution said in a statement, asserting that there is ample availability of the staple grain in the country.

To ensure transparency, all entities must register on the wheat stock limit portal and update their stock positions weekly. Entities holding stocks beyond the prescribed limits will have to bring them in compliance within 15 days of the notification’s issuance.

“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 ministry said.

The wheat stock limits were first imposed in June this year and revised in September to prevent hoarding and speculative practices amid concerns over price volatility.

This article has been republished from The upstox.com