India imposed stock limits on the quantity of wheat that retailers and processors can hold to keep prices in check, said Sanjeev Chopra, secretary, Department of Food and Public Distribution on June 24.
“From today, retailers, wholesalers and processors would be expected to maintain a certain stock of wheat until March 31, 2025,” Chopra noted, highlighting that the government was keeping all its options open to keep prices in check.
The secretary further assured that there was no shortage of wheat in the country.
ALSO READ: India has ample wheat stocks, no plans to alter import duty, says govt
Prices of wheat have increased 5.5-6 percent year on year. Consumer inflation in cereals was a high 8.7 percent in August compared with the previous year.
The secretary noted that the purpose of the stock limit was to target hoarding, which was being done to jack up prices. Retailers and other entities will have to report prices every Friday on the portal set up by DFPD (Department of Food and Public Distribution).
“They are being given 30 days' time to align with the new limits, which are in line with the limits imposed last year,” he noted.
The limit is 3,000 tonnes for wholesalers, 10 tonnes for retailers and 10 tonnes per outlet, up to 3,000 tonnes for big chains.
He also announced that the government, at present, had no proposal to review the ban on wheat exports. India placed curbs on wheat exports in May 2022, followed by curbs on broken rice and non-basmati rice.
The secretary noted that there was no proposal to revisit the export bans on rice.
The move to impose stock limits comes a few days after the government had imposed limits on tur and chana.
“Ever since we have imposed limits on tur and chana, prices have been down,” said Nidhi Khare, secretary, Department of Consumer Affairs.
Khare highlighted that since the imposition of limits, chana and tur prices in the wholesale market have come down by Rs 50-200 per quintal.
“We have received very encouraging reports from states. Tur and urad kharif targets of sowing have been higher. This year, we should be in a position to get moderate prices and also have some buffer stock,” Khare added.
Pulses inflation has remained high in double digits for over six months.
ALSO READ: RBI MPC Minutes: Food inflation remains main factor behind slow pace of disinflation
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
