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Informist, Wednesday, Sep 11, 2024

--Govt cuts wheat stock limit for wholesalers to 2,000 tn vs 3,000 tn 
--Govt keeps stock limit on wheat for retailers unch at 10 tn/outlet 
--Govt: Wheat stock limit for big chain retailers unch at 10 tn/outlet

NEW DELHI – The government has further tightened wheat stock holding limits for traders, wholesalers and processors in a bid to moderate wheat prices.

The government reduced the stock limits for traders/wholesalers to 2,000 tn from 3,000 tn earlier and for processors to 60% of the monthly installed capacity multiplied by the remaining months in the current financial year ending March, an official release said. Earlier, the limit for processors was 70% of the monthly installed capacity multiplied by the remaining months of the year. 

However, there is no change in the stock limit for retailers, which will remain at 10 tn. The stock limit for big chain retailers has also been retained at 10 tn per outlet but the total wheat big retail chains can hold has been revised to 10 times the total number of outlets from 3,000 tn earlier.

The government said it is keeping a close watch on the price of wheat and steps have been taken to ensure price stability for consumers.

The total production of wheat during 2023-24 was 112.9 mln tn and there is ample availability of wheat in the country, the release said.

"As part of continuous efforts to moderate prices of wheat, (the) central government has decided to revise the wheat stock limits," 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 currently have been given 15 days to bring down their stocks to the prescribed norms. "Officials of central and state governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country," the release said. 

Wheat prices in Kota, Rajasthan, which is a benchmark market, were steady at 2,600-2,625 rupees per 100 kg today. The prices rose nearly 300 rupees per 100 kg in August amid lower stocks in the country. Traders anticipate prices to rise amid uncertainty of the government's weekly electronic auction. Wheat stocks in the Centre's pool fell to 25.1 mln tn as of Sep 1, below the buffer norm of 27.58 mln tn for Jul-Sep.  End

Reported by Pallavi Singhal

Edited by Saji George Titus

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