India Imposes Wheat Stock Limits to Curb Hoarding and Ensure Food Security

In a decisive move to manage overall food security and prevent hoarding and unscrupulous speculation, the Government of India has imposed stock limits on wheat for various entities including traders, wholesalers, retailers, big chain retailers, and processors across all States and Union Territories. This regulation, outlined in The Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024, comes into immediate effect from today, June 24, 2024, and will remain in force until March 31, 2025.

Under this new order, stock limits are defined as follows:

Traders/Wholesalers: 3000 metric tons (MT)

Retailers: 10 MT per retail outlet

Big Chain Retailers: 10 MT per outlet and 3000 MT across all depots

Processors: 70% of Monthly Installed Capacity (MIC) multiplied by the remaining months of the fiscal year 2024-25

All respective legal entities must declare their stock positions and regularly update them on the portal of the Department of Food and Public Distribution at https://evegoils.nic.in/wsp/login. Should any entity's stock exceed the prescribed limits, they are required to adjust their stock levels to comply within 30 days from the date of this notification.

This measure aims to ensure a balanced distribution of wheat, mitigating the risk of shortages and price volatility due to hoarding and speculative activities.