To curb rising wheat prices and hoarding, the Central Government on Monday set a limit on wheat stock holding on traders, wholesalers, retailers and processors with immediate effect. Also, they will have to disclose their wheat stock every Friday. These restrictions will remain in force in all states and union territories till March 31, 2025.
Union Food Secretary Sanjeev Chopra told a press conference here that under the new rules, retail shops and individual shops of large chain retailers are allowed to store up to 10 tonnes of wheat. A limit of 3,000 tonnes each has been set for traders, wholesalers and large depots of large retail chains. At the same time, the limit for processors will be determined by multiplying 70 percent of their monthly installed capacity by the remaining months of the financial year 2024-25.
given 30 days time
The government has ordered all institutions to report about their stock and upload it regularly on the portal of the Department of Food and Public Distribution. Those holding stocks above the prescribed limit have been given 30 days to comply with the new norms. Chopra said that to reduce hoarding, a limit on stock keeping has been fixed. There are many means of monitoring retail prices and stock limit is one such means.
a high level meeting was held
The decision comes after a high-level meeting chaired by Home and Cooperation Minister Amit Shah last week, in which officials were directed to keep a close watch on wheat prices. The government then hinted at intervening in the market to ensure price stability for consumers. The Food Secretary said that at present there is a ban on export of wheat and there is no proposal to review the ban on export of sugar.
Prices have increased so much
Government data shows that the prices of wheat and wheat flour have increased by Rs 2 per kg compared to last year. As of June 20, the average retail price of wheat rose to Rs 30.99 per kg from Rs 28.95 a year ago. Wheat flour prices have also increased to Rs 36.13 per kg from last year’s Rs 34.29 per kg.
Government has sufficient reserves
The government says it has enough wheat stock, amounting to about 1.84 crore tonnes, to meet the requirements of the Public Distribution System (PDS) and other welfare schemes. As of June 18, the government purchased 26.66 million tonnes of wheat for the central pool in the Rabi marketing year 2024-25, slightly higher than the previous year’s purchase of 26.2 million tonnes.
