India Imposes Strict Stock Limits to Curb Wheat Price Surge and Hoarding

The Indian government has introduced stock holding limits for traders, wholesalers, retailers, and processors to control wheat prices and prevent hoarding. These regulations will be in effect until March 31, 2025. Single and big-chain retailers, wholesalers, and processors must disclose their wheat stocks every Friday, with defined caps on quantities they can hold.

In a decisive measure to curb rising wheat prices and hoarding, the Indian government imposed immediate stock holding limits on traders, wholesalers, retailers, and processors. These restrictions will be effective until March 31, 2025, across all states and Union Territories.

Union Food Secretary Sanjeev Chopra, in a press briefing, announced that single retailers, large retail chains, processors, and wholesalers must disclose their wheat inventories every Friday. Retail outlets can stock up to 10 tonnes, while big chain retailers and traders face a cap of 3,000 tonnes each. For processors, the limit is set at 70% of their Monthly Installed Capacity (MIC) multiplied by the remaining months in the 2024-25 fiscal year.

The new rules necessitate regular updates of stock positions on the Department of Food and Public Distribution's portal. Those exceeding the prescribed limits have a 30-day window to comply. This decision follows a high-level meeting led by Home Affairs and Cooperation Minister Amit Shah, aimed at ensuring price stability for consumers amid rising wheat prices.

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