📷 Image Credits: Moneycontrol
India has recently imposed stock limits on the quantity of wheat that retailers and processors can hold in order to keep prices in check. Sanjeev Chopra, the secretary of the Department of Food and Public Distribution, announced this measure on June 24, 2024. The aim of this decision is to prevent hoarding, which has been identified as a factor contributing to price inflation. Retailers, wholesalers, and processors are now required to maintain a certain stock of wheat until March 31, 2025. This move by the government is part of a broader strategy to ensure food security and prevent unscrupulous speculation in the wheat market. It is noteworthy that there is currently no shortage of wheat in the country, as confirmed by the secretary. Prices of wheat have seen a 5.5-6 percent increase year on year, with consumer inflation in cereals reaching 8.7 percent in August compared to the previous year. In addition to the stock limits, retailers and other entities are mandated to report prices every Friday on a portal established by the Department of Food and Public Distribution. The stock limits set by the government are as follows: 3,000 tonnes for wholesalers, 10 tonnes for retailers, 10 tonnes per outlet for big chains. Moreover, the government has no immediate plans to review the ban on wheat exports, which was put in place in May 2022. This decision comes on the heels of the government imposing limits on other food items such as tur and chana, which have resulted in price reductions in the wholesale market. The move towards stock limits aims to ensure stability in wheat prices and prevent artificial scarcity. At the same time, the government is also implementing measures to make wheat more accessible to consumers by facilitating sales through government entities at affordable prices.
