The Indian government has taken steps to ensure the adequate supply of wheat and prevent hoarding by imposing stock limits until March 31, 2024. The move is designed to improve food security, officials said.
The restrictions will apply to traders, wholesalers, retailers, big chain retailers, and processors in all states and Union Territories. Under the order, processors may keep a stock limit of 75% of their annual installed capacity or the equivalent in monthly installed capacity multiplied by the remaining months of 2023-24, whichever is less.
Wholesalers and traders will be limited to a maximum of 3,000 metric tonnes of wheat at any given time, while retailers may hold 10 tonnes. In the case of larger retail chains, the limit is 10 tonnes for each outlet and 3,000 tonnes for the entire chain.
The restrictions are seen as a necessary step to ensure the stability of the wheat market and prevent price fluctuations caused by hoarding. Officials noted that the move will have a positive impact on both consumers and farmers, as it will help to maintain a steady supply of wheat and ensure fair prices for those who produce it.
The decision follows a period of increasing volatility in the global wheat market, which has been beset by a range of factors including weather events, supply chain disruptions, and the ongoing Covid-19 pandemic. India is one of the world’s largest producers and consumers of wheat and any disruption to supply could have significant ramifications for the global market.
Overall, the stock limits will help to ensure the reliability of wheat supply chains, promote food security, and prevent market distortions caused by hoarding. While some in the industry may object to the restrictions, officials are confident that they will ultimately prove to be beneficial for all stakeholders involved.
