Government Imposes Stockholding Limit On Wheat To Ensure Price Stability

The Union government has imposed a stockholding limit on wheat for retailers, wholesalers, processors and big-chain retailers to check hoarding of the foodgrain and to ensure price stability, an official said on Monday.

Wheat stocks will be disclosed by all constituents of the supply chain every Friday, Union Food Secretary Sanjeev Chopra said in a press briefing. "I want to dispel the shortage of wheat in the country," he said.

The stock limit has been imposed in view of recent media reports that suggest a rise in prices of essential commodities, including wheat. It is one of the tools to keep a tab on retail prices, he said.

Chopra underscored the importance of stable wheat prices and said the stock limit for wholesalers would be 3,000 metric tonnes, while it would be 70% of the processing capacity for processors. For big chain retailers, it will be 10 tonnes per outlet, with an overall limit of 3,000 tonnes. For single retailers, it will be 10 tonnes, he said.

He also informed me that the opening stock of wheat was 82 lakh metric tonnes on April 1, 2023, while it was 75 lakh metric tonnes on April 1, 2024.

Chopra said 266 lakh metric tonnes of wheat were procured by the government last year, while 262 lakh metric tonnes have been procured this year. Procurement is still on and, therefore, the shortage of wheat in the opening stock is just 3 lakh metric tonnes, he said.

(With inputs from PTI)