To stop the hoarding of wheat, the government fixed the stock limit, this decision to crack down on the prices

Wheat Price Hike: With the intention of cracking down on the rising prices of wheat and flour, the government has taken a big decision. The government has fixed the limit for keeping stocks of wheat for traders, wholesalers, retailers, big chain retailers and processors. This decision of stock limit will remain in force till March 31, 2024. Not only this, the government has decided to sell wheat in the open market under the Open Market Sale Scheme (OMSS). In order to rein in the prices of wheat, by the end of this month, the government will issue 15 lakh tonnes of wheat to the bulk consumers, traders.

According to the Department of Food and Public Distribution, the central government has fixed the stock limit of wheat for the purpose of food security and to prevent profiteering and hoarding in the country. This will be applicable to traders, wholesalers, retailers, big chain retailers and processors of all states and union territories. This stock limit will be applicable till March 31, 2024. This is the first time in the last 15 years that the government has fixed the stock holding limit of wheat. Food Secretary Sanjeev Chopra said that the wholesale and retail prices have not increased that much, despite this the government has fixed the stock limit of wheat.

To curb the prices of wheat and flour, the government will sell 1.5 million tonnes of wheat in the open market to bulk consumers and traders. The reserve price has been fixed at Rs 2150 per quintal for the open market. The government has taken this decision after an 8 per cent jump in wheat prices in the mandi last month. He said that farmers and traders have sufficient stock of wheat. Along with this, hoarders have also held stock. At present, the government is not paying attention to the import of wheat. On the question of reducing the import duty of wheat, the Food Secretary said that there is no such plan as of now and there is sufficient stock of wheat in the country. However, the ban on export of wheat will continue.

Significantly, after Russia’s attack on Ukraine, when there was a sharp jump in the prices of wheat in the international market, in May 2022, the government had banned the export of wheat in view of food security in the country. As of May 1, 2023, there is 285 lakh tonnes of wheat stock in FCI godowns while the National Food Security Scheme or PM Garib Kalyan Anna Yojana requires 184 lakh tonnes of wheat annually.

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