Centre Imposes Stock Limits on Wheat for Wholesalers, Traders, Retailers, and Processors: Effective Till March 2024
The Government of India has taken a crucial step in imposing stock limits on wheat to regulate its distribution and prevent unethical speculation. This decision applies to traders, wholesalers, retailers, big chain retailers, and processors across all states and union territories. By implementing the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023, the government aims to ensure overall food security and combat hoarding practices.
According to the new regulations, each entity will have specific stock limits. Traders and wholesalers are restricted to 3000 MT, while retailers are limited to 10 MT per outlet. Big chain retailers are allowed 10 MT per outlet and 3000 MT at all their depots. Processors are required to maintain stocks within 75% of their annual installed capacity. To monitor compliance, legal entities must declare their stock positions and regularly update them on the Department of Food and Public Distribution’s portal. Entities with stocks exceeding the prescribed limits have 30 days to bring them down.
In addition to the stock limits, the central government has initiated the offloading of wheat from the central pool under the Open Market Sale Scheme (OMSS). The first phase will involve offloading 15 LMT of wheat through e-auction to flour mills, private traders, bulk buyers, and wheat product manufacturers. This measure aims to control retail prices and ensure the availability of wheat. Interested parties can register for the auction on the Food Corporation of India’s e-auction platform.
Furthermore, the government plans to offload rice under the OMSS to moderate prices. Details regarding the quantity and e-auction for rice will be announced shortly. These actions, along with the imposition of stock limits, are part of the government’s consistent efforts to stabilize essential commodity prices.
Conclusion: The imposition of stock limits on wheat, combined with the offloading of wheat and rice under the OMSS, reflects the Indian government’s proactive approach to maintain price stability and ensure food security. By regulating the distribution of wheat and rice, the government aims to prevent hoarding, curb speculative practices, and promote fair availability of essential commodities. The Department of Food and Public Distribution continues to monitor the stock position of wheat and rice, ensuring their control and easy accessibility throughout the country.
