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Informist, Thursday, Feb. 20, 2025
--Govt cuts stock limit on wheat for wholesalers to 250 tn from 1,000 tn
--Govt cuts stock limit on wheat for retailers to 4 tn per outlet from 5 tn
--Govt says stock limit on wheat cut to manage food security
--Govt says stock limit on wheat applicable till Mar 31
NEW DELHI – The government further reduced on Thursday the quantity of wheat that trade entities can stock, according to a consumer affairs ministry release. The revised stock limits are intended at managing overall food security, preventing hoarding and unscrupulous speculation, and manage prices. The limit will be applicable till Mar. 31, it added.
As per the revised stock holding norms, a wheat trader or wholesaler cannot stock more than 250 tonnes. Previously, they could hold 1,000 tonnes, 2,000 tonnes and 3,000 tonnes, as announced in December, September and June, respectively.
For retailers, wheat stock limit is reduced to 4 tonnes per retail outlet from 5 tonnes earlier. Big chain retailers can hold only 4 tonnes in each outlet, and in depots stock 4 tonnes multiplied by the total number of outlets, the release said. Previously, big chain retailers could stock 5 tonnes per outlet.
For processors, the stock limit remains the same at 50% of the monthly installed capacity multiplied by the remaining months in the current financial year ending March, the release said.
All wheat stocking entities have been asked to register on the wheat stock limit portal and update the stock position 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 the Essential Commodities Act," the release said.
Those holding higher stocks are given 15 days to bring down stocks to the prescribed norms. Prices of wheat in spot markets rose to record highs Thursday due to high prices and firm demand at the government's weekly auction on Wednesday, traders said. The price of wheat in Kota, Rajasthan, were at record high of INR 3,480 per 100 kg Thursday. Wheat prices have increased amid tight supply and firm demand.
The following is the wheat stock limit announced on Thursday compared with the limit issued on Dec. 11:
| Entity | Existing wheat stock limit | Revised wheat stock limit |
| Trader/Wholesaler | 1,000 tonnes | 250 tonnes |
| Retailer | 5 tonnes | 4 tonnes |
| Big chain retailer | 5 tonnes for each outlet and 5 multiplied by total outlets | 4 tonnes for each outlet and 4 multiplied by total outlets |
| Processor | 50% of monthly installed capacity multiplied by remaining months of FY25 | 50% of monthly installed capacity multiplied by remaining months of FY25 |
End
Reported by Pallavi Singhal
Edited by Deepshikha Bhardwaj
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