New Delhi: The Center on Monday imposed limits on wheat stocks that wholesalers, retailers and processors can keep with them to prevent hoarding and control prices.
Wheat stock limits will be valid until March 31, 2025.
The Center also ruled out any proposal to lift the ban on wheat exports and said it could consider other policy options, including reducing import duties on the food grain, if necessary, to keep retail prices in check.
Currently, a 40 percent import duty applies to wheat.
Announcing the decision, Union Food Secretary Sanjeev Chopra said that there is adequate availability of wheat in the country and the decision was taken to avoid market speculation and hoarding of foodgrains.
"I want to dispel the wheat shortage in the country...we want wheat prices to be stable," Chopra said.
Last week, the Center imposed stock limits on tur and chana dals to check prices.
Chopra said the stock limits would be applicable to traders/wholesalers, retailers, large retail chains and processors across all states and Union Territories. They would have to declare wheat stocks every Friday on a portal.
In case the stock held by them is more than the prescribed limit, they shall bring it to the prescribed stock limits within 30 days from the issuance of this notification.
According to an official statement, the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024 was issued with effect from June 24, 2024 and will be applicable until March 31 2025 for all states and union territories. ..
Stock limits will apply to each entity individually, such as traders/wholesalers: 3000 tonnes; retail: 10 tons for each of the points of sale; Large retail chain (10 tons for each point of sale and 3,000 tons in all its warehouses and processors), 70 percent of its monthly installed capacity multiplied by the remaining months of fiscal year 2024-25.
Earlier this month, the Union Agriculture Ministry revised up wheat production to a record 112.92 million tonnes for crop year 2023-24 (July-June) in its third estimate. Wheat production stood at 110.55 million tonnes in the 2022-23 agricultural season.
Last week, the Food Ministry said around 266 lakh tonnes of wheat had been procured till June 18 of the marketing year 2024-25 (April-March) against a procurement of 262 lakh tonnes in 2023- 24.
Chopra also reported that the opening stocks of wheat were 82 lakh metric tonnes (LMT) on April 1, 2023, while it was 75 LMT on April 1, 2024.
Therefore, the shortage of wheat (in initial stocks) is only 3 TML, Chopra explained.
After meeting the requirement of food law and other welfare schemes, which is about 184 lakh tonnes, sufficient wheat stock is available to carry out market interventions, whenever required, he said.
Chopra explained that the stock limit was imposed in view of recent media reports that prices of essential commodities, including wheat, are rising.
He noted that the stock limit was imposed to reduce hoarding and noted that there are many tools (to control retail prices) and the stock limit is one of those tools.
On sugar, Chopra said the government is not considering any proposal to allow exports.
In the current sugar marketing campaign 2023-24 (October-September), the Center has not issued any export permit to the mills.
Consumer Affairs Secretary Nidhi Khare said the government's decision to impose stock limit on tur and chana has led to some fall in the retail prices of these two dals.
Wheat stock limits will be valid until March 31, 2025.
The Center also ruled out any proposal to lift the ban on wheat exports and said it could consider other policy options, including reducing import duties on the food grain, if necessary, to keep retail prices in check.
Currently, a 40 percent import duty applies to wheat.
Announcing the decision, Union Food Secretary Sanjeev Chopra said that there is adequate availability of wheat in the country and the decision was taken to avoid market speculation and hoarding of foodgrains.
"I want to dispel the wheat shortage in the country...we want wheat prices to be stable," Chopra said.
Last week, the Center imposed stock limits on tur and chana dals to check prices.
Chopra said the stock limits would be applicable to traders/wholesalers, retailers, large retail chains and processors across all states and Union Territories. They would have to declare wheat stocks every Friday on a portal.
In case the stock held by them is more than the prescribed limit, they shall bring it to the prescribed stock limits within 30 days from the issuance of this notification.
According to an official statement, the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024 was issued with effect from June 24, 2024 and will be applicable until March 31 2025 for all states and union territories. ..
Stock limits will apply to each entity individually, such as traders/wholesalers: 3000 tonnes; retail: 10 tons for each of the points of sale; Large retail chain (10 tons for each point of sale and 3,000 tons in all its warehouses and processors), 70 percent of its monthly installed capacity multiplied by the remaining months of fiscal year 2024-25.
Earlier this month, the Union Agriculture Ministry revised up wheat production to a record 112.92 million tonnes for crop year 2023-24 (July-June) in its third estimate. Wheat production stood at 110.55 million tonnes in the 2022-23 agricultural season.
Last week, the Food Ministry said around 266 lakh tonnes of wheat had been procured till June 18 of the marketing year 2024-25 (April-March) against a procurement of 262 lakh tonnes in 2023- 24.
Chopra also reported that the opening stocks of wheat were 82 lakh metric tonnes (LMT) on April 1, 2023, while it was 75 LMT on April 1, 2024.
Therefore, the shortage of wheat (in initial stocks) is only 3 TML, Chopra explained.
After meeting the requirement of food law and other welfare schemes, which is about 184 lakh tonnes, sufficient wheat stock is available to carry out market interventions, whenever required, he said.
Chopra explained that the stock limit was imposed in view of recent media reports that prices of essential commodities, including wheat, are rising.
He noted that the stock limit was imposed to reduce hoarding and noted that there are many tools (to control retail prices) and the stock limit is one of those tools.
On sugar, Chopra said the government is not considering any proposal to allow exports.
In the current sugar marketing campaign 2023-24 (October-September), the Center has not issued any export permit to the mills.
Consumer Affairs Secretary Nidhi Khare said the government's decision to impose stock limit on tur and chana has led to some fall in the retail prices of these two dals.
