The government on Friday further tightened inventory holding norms for wholesalers, retailers, large retailers and processors with immediate effect to curb hoarding and stem price hikes.
Briefing media, Food Minister Sanjeev Chopra said the stock limit has been reduced from the existing 2,000 tonnes for traders/wholesalers to 1,000 tonnes.
The stock limit will be 5 tonnes instead of 10 tonnes per retailer, 5 tonnes for each depot of a major retailer and a total of 1,000 tonnes for all their depots, he said.
In the case of processors, they can retain 70 percent of the monthly installed capacity multiplied by the remaining months of 2023-2024, he added.
“This was done to prevent artificial scarcity and to combat hoarding. The revised inventory limits will be applicable with immediate effect,” Chopra said.
Traders will be given 30 days to reduce inventory to the revised limits, he added.
All wheat storage companies are required to register on the wheat stock limit portal (https://evegoils.nic.in/wsp/login) and update the stock position every Friday, an official statement said.
Any entity found not to have registered on the portal or violating the stock limits will be subject to appropriate penal action under Section 6 and 7 of the Essential Commodities Act, 1955.
It was on June 12 that the Ministry of Food had imposed stock limits on various types of traders until March 2024.
Initially, the stock limit of 3,000 tons was imposed on traders and wholesalers, 10 tons on retailers, and 10 tons for each outlet of major retail chains and 3,000 tons for all their depots. In the case of processors: 75 percent of the annual installed capacity.
Subsequently, on September 14, the stock limit was further reduced to 2,000 tonnes each for traders/wholesalers, and also for major retailers in all their depots.
In addition to stock limits, the government has taken various measures to guarantee domestic availability and combat price increases.
There has been a ban on wheat exports since May 2022, with wheat being delivered at a subsidized rate to bulk users under the open market sales scheme.
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