Government imposes wheat stockholding limits to ensure price stability

The Centre has announced new stockholding limits on wheat for various stakeholders in the food supply chain, effective from Monday. This move aims to prevent hoarding and maintain price stability in the market.

Union Food Secretary Sanjeev Chopra revealed the details during a press briefing. Wholesalers will be limited to 3,000 tonnes, while processors can hold up to 70% of their processing capacity. Big chain retailers are allowed 10 tonnes per outlet with an overall cap of 3,000 tonnes and single retailers are restricted to 10 tonnes.

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Chopra emphasized there’s no shortage of wheat in the country and no current ban on wheat exports. He also mentioned there are no plans to review the existing ban on sugar exports.

To ensure compliance, all stakeholders must disclose their wheat stocks every Friday. This measure comes in response to recent reports of rising prices for essential commodities, including wheat.

The government views this stock limit as one of several tools to monitor and control retail prices. Chopra stressed the primary goal is to keep wheat prices stable for consumers.