Centre cuts wheat stock limits to curb hoarding, stabilise prices; traders get 15 days to comply

The Union government on Thursday tightened stock limits on wheat for traders, retailers, and processors in a bid to prevent hoarding and stabilise prices.

The revised limits, effective until March 31, 2025, reduce the maximum stock traders and wholesalers can hold to 250 tonnes from 1,000 tonnes. Retailers are now restricted to 4 tonnes per outlet, down from 5 tonnes, while big chain retailers can store up to 4 tonnes per outlet, with a cumulative cap based on their total number of outlets and depots, the food ministry said in a statement.

Processors can hold a maximum of 50% of their monthly installed capacity (MIC) multiplied by the remaining months until April 2025, unchanged from the previous limit.

The government said the move was aimed at ensuring overall food security and preventing speculative hoarding that could drive up prices. India produced 113.2 million tonnes of wheat during the 2024 rabi season, and the government has assured there is ample availability in the country.

Entities holding stocks above the new thresholds have 15 days to comply, and all stocking entities must register on the wheat stock limit portal and update their stock position weekly.

“ Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act,1955,” the ministry said.

“The Department of Food and Public Distribution is maintaining a close watch over the stock position of Wheat to control prices and ensure easy availability in the country,” it added.