Centre cuts wheat stock limit for traders in move to ease prices

New Delhi (The Uttam Hindu); As part of its continuous efforts to moderate prices of wheat, the Central government has decided to reduce the Wheat Stock limit for wholesale and retail traders, which will be applicable until March 31, 2025.

The limit for wheat stocks has been reduced from 2,000 metric tonnes to 1,000 metric tonnes for wholesale traders, while it has been slashed to 50 metric tonnes from 100 metric tonnes for retail traders, according to a statement issued by the Ministry of Consumer Affairs, Food and Public Distribution on Wednesday.

The lower stock limits are aimed at preventing hoarding, which tends to drive up prices despite adequate stocks being available,

All wheat stocking entities are required to register on the wheat stock limit portal (https://evegoils.nic.in/wsp/login) and update the stock position on every Friday.

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 and 7 of Essential Commodities Act,1955, the official statement said.

In case the stocks held by the above entities are higher than the above prescribed limit, they shall have to bring the same to the prescribed stock limits within 15 days of issue of the notification, the statement added.

"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," it explained.

"A total production of 1,132 lakh metric tonnes (LMT) of wheat was recorded during Rabi 2024 and there is ample availability of wheat in the country,” the statement said.

In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the government of India imposed stock limits on Wheat applicable to Traders/Wholesalers, Retailers, Big Chain Retailers and Processors in all states and Union territories.

The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024 was issued on June 24, 2024, and revised on September 9, 2024, and was applicable for all states and Union territories.