Centre cuts wheat stock limit for traders to keep prices in check

New Delhi, Aug 26 (IANS) As part of continuous efforts to moderate prices of wheat before the upcoming festive season, the Central Government has decided to reduce the wheat stock limit applicable to wholesale and retail traders as well as processors in all States and Union Territories until March 31, 2026.

The stock limit of wheat for wholesalers has been reduced to 2,000 metric tonnes (MT) from 3,000 MT earlier, while in the case of retailers, the stock limit has been cut to 8 MT for each retail outlet from 10 MT earlier, according to a statement issued by the Ministry of Consumer Affairs, Food and Public Distribution on Tuesday.

Similarly, for wheat processors, the wheat stock limit has been scaled down to 60 per cent of the monthly installed capacity (MIC) multiplied by the remaining months of FY 2025-26.

Earlier, the limit was fixed at 70 per cent of the monthly installed capacity multiplied by the remaining months of FY 2025-26

The stock limits are imposed as part of the government’s policy to manage overall food security and to prevent hoarding and unscrupulous speculation that drives up prices by creating an artificial scarcity.

All wheat stocking entities are required to declare/update the stock position on every Friday on the wheat stock portal (https://foodstock.dfpd.gov.in). Any entity which is found not to have registered on the portal or violates the stock limits will be subject to suitable punitive action under Sections 6 and 7 of the Essential Commodities Act,1955.

In case the stocks held by these entities are higher than the prescribed limit, they will have to bring them down to the prescribed stock limits within 15 days of the issue of the notification. Officials of the Central and State Governments will be closely monitoring the enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country.

A total production of 1175.07 lakh metric tonnes (LMT) of wheat was recorded during the crop year 2024-25, and there is ample availability of wheat in the country.

The Central Government has procured 300.35 LMT wheat in the Rabi marketing season for 2025-26 through state agencies and the FCI, which is sufficient to meet the requirements of PDS and other market interventions.

The Department of Food and Public Distribution is maintaining a close watch over the stock position of wheat to control prices and ensure easy availability in the country, the statement added.

--IANS

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