To ensure food security, Centre imposes limit on wheat stock

Neeraj Mohan

New Delhi, June 24

To reinforce food security and stabilise prices, the Centre has announced the imposition of stock limit on wheat for traders, retailers, big chain retailers and processors across states and union territories.

The decision, aimed at curbing hoarding and speculative practices, underscores the government’s proactive measures in managing essential food stocks.

Sanjeev Chopra, Secretary of the Department of Food and Public Distribution, said, “The move is designed to prevent hoarding and unscrupulous speculation. We aim to ensure sufficient stock availability and stable prices in the domestic market.”

Chopra said the government had issued an order removing licensing requirements, stock limit and movement restrictions on specified foodstuffs, effective immediately until March 31, 2025. The stock limit for wholesalers would be 3,000 tonnes, while it would be 70 per cent of the processing capacity for processors multiplied by the remaining months of the 2024-25 fiscal. For big chain retailers, it would be 10 tonnes per outlet with an overall limit for 3,000 tonnes and for single retailers, it would be 10 tonnes.

He said the opening stock of wheat was 82 lakh metric tonnes (LMT) on April 1, 2023, while it was 75 LMT on April 1, 2024. This rabi marketing season, the government procured 266 LMT of wheat against 262 LMT last year, surpassing the required 188 LMT. He made it clear that there was no plan to lift the ban on the export of wheat, sugar and non-basmati rice.

Chopra said, “As of now, there is no proposal to remove ban on the export of these key items. The ban will remain in effect until further notice to prioritise domestic availability and price stability.” “There is no shortage of wheat in the country. The stock limit is part of our strategy to maintain stable prices and ensure consumer interests,” he said.

Bid to prevent hoarding

The move is designed to prevent hoarding and unscrupulous speculation. We aim to ensure sufficient stock availability and stable prices in the domestic market. — Sanjeev Chopra, secy, food & public distribution