Wheat price up 8% in a month, govt imposes stock limit

New Delhi, June 12

After a gap of 15 years, the Union Government on Monday imposed a limit on wheat stocks apparently following an 8 per cent hike in the grain price over the past one month.

The new limit of wheat stock, which came into effect on Monday evening, will remain in force till March next year.

For traders and wholesalers, the stock limit has been fixed at 3,000 metric tonnes, for retailers 10 MT for each retail outlet, and for big chain retailers 10 MT for each outlet and 3,000 MT at depots.

The stock limit on wheat for processors has been fixed at 75 per cent of annual installed capacity or quantity equivalent to monthly installed capacity multiplied by remaining months of 2023-24, whichever is less.

Sanjeev Chopra, Secretary, Department of Food and Public Distribution (DFPD), said the step was taken as unscrupulous elements were creating artificial scarcity of wheat in the country.

“Despite enough wheat stock, the prices are rising. Traders will be given one month to bring their excess wheat stocks in line with imposed limit. The move will bring more wheat in the market and bring down prices,” said Chopra.

The government also decided to offload 15 MT of wheat in the first phase from central pool through e-auction to control retail prices of the grain.