Government Imposes Stock Limit on Wheat to Ensure Food Security and Prevent Hoarding

In a proactive measure aimed at safeguarding food security and curbing potential market abuses, the Government of India has implemented stringent stock limits on wheat across various sectors including traders, wholesalers, retailers, big chain retailers, and processors. This decision, encapsulated in the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024, comes into effect immediately from June 24, 2024, and will remain enforceable until March 31, 2025, across all States and Union Territories.

Under the new regulations, each category of entity faces specific stock thresholds. Traders and wholesalers are limited to 3000 metric tonnes (MT) of wheat. Retailers are capped at 10 MT per retail outlet, while big chain retailers can stock up to 10 MT per outlet and 3000 MT across all their depots. Processors, on the other hand, are restricted to 70% of their Monthly Installed Capacity (MIC) multiplied by the remaining months of the fiscal year 2024-25.

To ensure compliance and transparency, all affected entities are mandated to declare their current stock positions promptly and maintain regular updates on the Department of Food and Public Distribution's designated portal (https://evegoils.nic.in/wsp/login). Entities found holding stocks exceeding the prescribed limits must rectify the situation within 30 days from the issuance of this notification.

This move by the government aims to prevent hoarding, speculation, and undue market influence, thereby stabilizing wheat prices and ensuring equitable access to this essential commodity. It underscores the government's commitment to maintaining food security and fair market practices amidst evolving economic conditions and global uncertainties.

For stakeholders in the agriculture and food sectors, adherence to these stock limits will be critical in navigating the regulatory landscape and contributing to sustained food availability and affordability for all citizens.