Centre lowers wheat stock limits to keep prices in check

The government has further tightened a limit on the stocking of wheat in the country in a bid to tame the domestic prices of the crop. 

In an official notification, dated September 14, the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution announced the following upper limits for the remainder of the current financial year, which ends on March 31, 2024: 

• For traders or wholesalers: 2,000 MT
• For retailers: 10 MT for each outlet
• For big chain retailers: 10 MT for each outlet and 2,000 MT at all their depots
• For processors: 75 per cent of annual installed capacity or quantity equivalent to monthly installed capacity multiplied by the remaining months of 2023-24, whichever is less

The limits, according to the department’s order, will be applicable to all the states and Union Territories. 

That marks a reduction of 1,000 MTs, or 33.3 per cent, in the limit applicable to traders and wholesalers, given the existing limit. 

"In view of a recent uptick in the prices, we have had a review of the stock limits and effective today, the stock limit on traders, wholesalers and big chain retailers stands reduced,” Food Secretary Sanjeev Chopra said on Thursday. 

The government noticed a four per cent rise in wheat prices citing "some elements trying to create some artificial scarcity" though it acknowledged the availability of adequate wheat in the country.

The stock limit was introduced, for the current financial year, in June.