Govt halves wheat stock limit to prevent hoarding, fight food inflation

SECTIONSGovt halves wheat stock limit to prevent hoarding, fight food inflationReutersLast Updated: Feb 08, 2024, 04:12:00 PM ISTRate StoryFollow usShareFont SizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsis

In a bid to ensure ample availability of wheat and stabilize prices, the Indian government has announced a reduction in the stock limit that traders and wholesalers can hold. According to a statement released on Thursday, the previous limit of 1,000 metric tons has now been lowered to 500 metric tons.

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The government on Thursday announced lowering the stock limit of wheat that traders can hold to increase the grain's availability and moderate prices.

The limit on wheat stocks held by traders and wholesalers was cut to 500 metric tons from earlier limit of 1,000 tons, a government press release stated.

"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 Section 6 & 7 of Essential Commodities Act,1955," the release stated.

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The government said that in case the stocks held by entities are higher than the prescribed limit, they shall have to bring the same to the prescribed stock limits within 30 days of issue of the notification. "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," it said.

Also, Government has taken a series of steps under the Open Market Sale Scheme (OMSS). A quantity of 101.5 LMT wheat at a subsidised price of Rs. 2,150/quintal has been allocated for calibrated release into the domestic open market by the FCI, through weekly e-auctions.

An additional 25 LMT can be offloaded under OMSS during Jan-Mar 2024, depending on requirement. So far, 80.04 LMT has been offloaded by FCI to processors through weekly e-auctions, and this has increased availability of wheat into the open market at affordable prices, benefitting general consumers across the country.

FCI is also issuing wheat to Central Co-operative organizations like NAFED, NCCF and Kendriya Bhandar for processing into atta and for sale under 'Bharat Atta' brand through their physical/mobile outlets, at an affordable price of Rs. 27.50/kg. "Areas where prices are reigning higher have been identified, and the agencies are undertaking targeted sales in these areas. 7.5 LMT of wheat has been allocated for converting into Atta and sale under ‘Bharat Atta’ brand. The allocations to NAFED/NCCF and Kendriya Bhandar are being reviewed periodically to ensure sufficient availability," said government in the release.

"The Department of Food and Public Distribution is maintaining a close watch over the stock position of Wheat to control prices and ensure easy availability in the country," it said.


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