The Centre has clamped wheat stock limit on retailers, wholesalers, traders, stockists and processors, prescribing specific quantity for each category while asking them to dispose of any additional quantity in their possession above the prescribed limit within next 15 days. The decision has come after wheat procurement almost ended with the government purchasing 29.82 million tonnes (mt) until May 27, against the target of 33.27 mt.
There is little scope of adding more into the Central Pool from now on due to low arrivals, except some quantity in Rajasthan, sources said adding the total Central Pool stock may reach around 30 mt.
In an order issued by C Shikha, a Joint Secretary in the Food Ministry, on March 27 and published in the official gazette on Wednesday, all stakeholders have been asked to ensure that “wheat stock is regularly declared and updated on the portal” of the Food Ministry. Besides, “in case the stocks held by them are higher than the prescribed limits, then they shall bring the same to the prescribed stock limits within 15 days of issue of this notification,” the GO said.
Efforts to moderate
As part of continuous efforts to moderate prices of wheat, the government has decided to impose the wheat stock limit applicable until March 31, 2026, official sources said.
According to the norms, any retailer can hold a maximum of 10 tonnes at its outlet, which is seen at managing the overall food security and to prevent hoarding and unscrupulous speculation. Big chain retailer, too, is allowed to hold maximum 10 tonnes at each of their outlet. For instance, the big chain retailer having 5 outlets can keep maximum 50 tonnes including at its depot.
The stock limit for traders/wholesalers has been fixed at 3,000 tonnes. Similarly, processors will be allowed to maintain 70 per cent of their monthly installed capacity multiplied by the remaining months till March 31, 2026. For instance, a flour miller with 2,000 tonnes monthly capacity will keep maximum 14,000 tonnes during June-March of FY26 and will be 12,600 tonnes during July-March period.
Ironically, the stock limit order has come on the same day when the Agriculture Minister upped the previous estimate made in March and said wheat production in the country is estimated to be 117.51 million tonnes — up by 3.7 per cent from 113.29 mt in 2023-24.