Government slashes stock limit on wheat traders to 2,000 tonnes from 3,000 tonnes

New Delhi: In an attempt to stabilize the prices of wheat and flour in the retail market, the government on Thursday reduced the stock limit on wheat traders, wholesalers and big chain retailers to 2,000 tonnes from 3,000 tonnes with immediate effect.

While announcing the decision, Food Secretary Sanjeev Chopra said, “Keeping in view of 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 stand reduced to 2000 tonne.”

Notably, three months back on June 12, the government had imposed a stock limit of 3,000 tonnes on these wheat players till March 2024.

The stock limit has been reduced to 2,000 tonnes as the government found there is an “an uptick in the wheat prices on the NCDEX by 4 per cent to Rs 2,550 per quintal in the past one month. “Although, there is adequate availability of wheat in the country, I think there are some elements which are trying to create some artificial scarcity,” Chopra said in a hurriedly called press conference.

As per the decision, the stock limit for big chain retailers has been fixed at 10 MT for each outlet and 2,000 MT at all their depots. However, for other categories, there is no change in the stock limits, the secretary said, adding that all wheat stocking entities are required to register on the wheat stock limit portal 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 the legal provisions of Essential Commodities Act,1955. In case the stocks held by above entities are higher than the above prescribed limit, they would have to bring the same to the prescribed stock limits within 30 days of issue of the notification, the ministry said in an official statement.