Centre halves wheat stock limits for traders, processors
12 Dec 2023
The centre on Friday announced fresh stock limits on wheat held by traders – both wholesale and retail – as also retail networks and processors, in order to prevent hoarding and speculation and to ensure overall food security.
The government had, on 12 June this year, done away with restrictions on foodgrain movement through the passage of the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023, which was to be applicable until 31 March 2024.
As part of continued efforts to moderate prices of wheat, the central government has decided to revise the wheat stock limit with respect to traders and wholesalers from 2,000 tonnes to 1,000 tonnes; from 10 tonnes to 5 tonnes for retailers and retail outlets of retail chains with an overall limit of 1,000 tonnes.
For processors, the stock limit has been set at 75 per cent of annual installed capacity or quantity equivalent to monthly installed capacity multiplied by remaining months of 2023-24, whichever is less, or 70 per cent of monthly installed capacity multiplied by remaining months of 2023-24.
All entities holding wheat stocks are required to register on the wheat stock limit portal (https://evegoils.nic.in/wsp/login) and update the stock position on every Friday. Failure to register on the portal or violation of stock limits will be subject to punitive action, a government release stated.
Simultaneously, the government has allocated over10 million tonnes of wheat at a subsidised price of Rs2,150 per quintal to be released into the domestic open market. The sale will be undertaken by FCI through weekly auctions. An additional 2.5 million tonnes are planned to be offloaded under OMSS during Jan-Mar 2024, depending on requirement.
FCI has so far offloaded 4.46 million tonnes of wheat to processors through weekly auctions.
FCI is also issuing wheat to central co-operatives like NAFED, NCCF and Kendriya Bhandar for processing into atta and for sale under 'Bharat Atta' brand through their physical/mobile outlets, at an affordable price of Rs27.50 per kg. The quantum of wheat to be supplied for Bharat Atta is being further increased from 2.5 lakh tonnes to 4 lakh tonnes till end January 2024, the release added.
