The Indian government has taken decisive steps to stabilize wheat prices and curb potential hoarding by implementing a stockholding limit effective from Monday. This measure applies to retailers, wholesalers, processors, and large-chain retailers across the country. The primary objective is to prevent artificial scarcity of wheat and maintain price stability in the market.
According to Sanjeev Chopra, Union Food Secretary, who addressed the media during a press briefing, the new regulations mandate that single retailers, big-chain retailers, processors, and wholesalers must disclose their wheat stocks every Friday. This transparency is aimed at ensuring accountability and preventing any undue accumulation of the essential food grain.
Chopra emphasized that the government’s intention is not to create a shortage of wheat but rather to dispel any perceptions of scarcity in the market. He clarified that there are currently no restrictions on wheat exports and no immediate plans to reconsider the ban on sugar exports.
Under the new guidelines, wholesalers are limited to holding a maximum of 3,000 tonnes of wheat, while processors are restricted to 70% of their processing capacity. Big-chain retailers are allowed up to 10 tonnes per outlet, with an overall limit of 3,000 tonnes. Similarly, single retailers are capped at 10 tonnes of wheat.
The decision to impose these stockholding limits comes in response to recent reports indicating a rise in prices of essential commodities, including wheat. The government views these measures as essential tools to combat hoarding and maintain control over retail prices.
Chopra also provided insight into the current wheat stocks, noting that as of April 1, 2024, there were 75 lakh metric tonnes (LMT) available, slightly lower than the 82 LMT recorded on April 1, 2023. He highlighted that despite a slight decrease in opening stocks, the government procured 262 LMT of wheat this year, only marginally less than the 266 LMT procured last year. This procurement effort underscores the government’s proactive stance in managing wheat supplies and ensuring food security for the nation.
In conclusion, the imposition of stockholding limits on wheat by the government is a proactive step aimed at maintaining stability in wheat prices, preventing hoarding, and ensuring adequate availability of this essential food commodity across India.
