In view of rising prices the stock limit of wheat was further reduced

Mumbai: Keeping in mind the high price of wheat domestically, the government has decided to reduce the stock limit for wheat traders, wholesalers, millers and others. Government sources said the stock limit has been reduced in an effort to bring down prices by increasing domestic supply.

The stock limit for wheat traders and wholesalers has been reduced from 2000 tonnes to 1000 tonnes. For retailers, the limit for each of their retail shops has been reduced from 10 tonnes to five tonnes.

A statement issued by the government said that for large chain retailers, the limit for each outlet has been reduced from 10 tonnes to five tonnes. The stock limit for processors has been fixed at 60 percent of their monthly installed capacity for the remaining months of the financial year 2024-25.

The new stock limit will be effective till March 31, 2025. In the last Rabi season, wheat production in the country was 11.32 crore tonnes. The government has claimed that there is sufficient stock of wheat in the country.

The government had imposed the stock limit on wheat on June 24 of the current year and then revised it on September 9. However, with wheat prices relatively high, the government has decided to tighten the stock limit, market circles said.

All concerned maintaining wheat stock will have to update their stock position on the portal every Friday. The statement also said that the stock limit has been imposed for those who have to bring their stock to the level of the limit declared by the government within fifteen days from today.

The retail price of wheat is currently Rs 40 to Rs 45 per kg for medium quality and Rs 52 to Rs 55 per kg for good quality in Kathiawar. The prices of goods from Rajasthan and MP are said to be Rs 42 to 46 per kg.

It is reported here that in view of the high price of wheat in the open market, the government’s decision to release one lakh tonnes of wheat in the first auction under the Open Market Sale Scheme received a good response.

Food Corporation of India (FCI) sources had earlier said that around 1,500 processors had bid for 98,700 tonnes of wheat in the first round of the weekly auction. This wheat was given at support price.

Market sources also said the government is worried about wheat production in the current Rabi season due to weather uncertainty.