To ensure price stability and curb hoarding, the government on Monday imposed stock holding limits on wheat for retailers, wholesalers, processors and big-chain retailers till March, 31, 2025.
According to Sanjeev Chopra, secretary, department of food and public distribution said that there is no shortage of wheat in the country, the move to impose stock holding limits on the commodity would help improve supplies. Chopra ruled out lifting the export ban on wheat imposed in May 2022.
Chopra stated that the stock limit has been imposed in view of recent reports that the prices of essential commodities are increasing including wheat and the move to impose stock holding limit aimed at reducing hoarding. “There are many tools to keep a tab on retail prices and stock limit is one of such tools,” he said.
The stock holding limit of traders and wholesalers have been fixed at 3000 tonne, retails and big chain retailers can keep 10 tone in each of their outlets, while 3000 tonne of wheat at all their depots. Processors of grain can keep 70% of their monthly installed capacity multiplied by the remaining months of 2024-25.
The government will allow concerned entities to comply with the stock holding limits norm within 30 days. “Respective legal entities will have to declare the stock position and update them regularly on the portal (of food ministry),” according to an official statement.
On prospects on output, Chopra said “there is no shortfall of wheat in the country. Wheat production is 4-5 million tonnes (MT) higher than the previous year,”. According to the agriculture ministry, wheat output in the 2023-24 crop year (July-June) is estimated at 112.92 MT.
While stating that there is no proposal to review the ban on wheat exports imposed in May, 2022, Chopra said that reducing the 40% imports duty on wheat currently not being considered.
“We want prices of wheat to be stable,” Chopra said. Inflation in wheat was 6.53% in May on year and due to record open market sales of 10 MT of wheat from the Food Corporation of India (FCI) stocks, inflation has been in single digit since August, 2023.
At present, FCI has 30.41 MT of wheat stock against the buffer of 27.58 MT for July 1. An official note stated that after meeting the requirement for the public distribution system and other welfare schemes, which is approximately 18.4 MT, sufficient stock of wheat will be available to undertake market interventions, as and when required.
Chopra said the opening stock of wheat was 8.2 MT on 1 April 2023 while it was 7.5 MT on 1 April 2024. He said 26.6 MT of wheat has been procured this season against 26.2 MT procured last season