In a move aimed at maintaining price stability despite record wheat production, the Central government on Wednesday reimposed stockholding limits on wheat, just months after the restrictions were temporarily lifted in March 2025 to allow market players to replenish inventories.
The reimposition comes amid signs of firming retail prices and rising procurement concerns, even as the country witnesses a bumper wheat harvest for the 2024–25 season.
Revised Rules and Timelines
Under the revised order issued by the Department of Food and Public Distribution, traders and retailers must bring down their wheat stocks within 15 days, half the time they were allotted last year, when a 30-day window was allowed to liquidate surplus inventory.
The updated stock limits are as follows:
- Traders: 3,000 tonnes
- Retailers: 10 tonnes
- Big chain retailers: 10 tonnes per outlet
This is the eighth time since June 2023 that the government has adjusted stockholding limits, as it tries to manage food inflation and ensure steady supplies across consumer markets.
Price Stabilization and Inflation Management
Officials note that the decision is preventive, designed to stop speculative hoarding and ensure that wheat and flour (atta) remain affordable for consumers.
“Despite record production, price signals from the open market suggested the need for intervention. These limits will help in curbing undue price rise and ensure adequate availability,” a senior food ministry official said.
Data from recent months has shown that consumer price inflation in wheat and atta — particularly from non-PDS (Public Distribution System) sources — has eased due to sustained market interventions and stock control measures.
Background: Temporary Relaxation in March
In March 2025, the Centre had temporarily lifted stock limits to allow market participants, especially private traders and large retailers, to rebuild inventories ahead of the new procurement cycle. This was done to avoid sudden supply gaps following higher than anticipated offtake during the winter season.
However, a resurgence in wheat prices in some regions, alongside active procurement by the Food Corporation of India (FCI), has prompted the government to reinstate limits earlier than expected.
Outlook
The wheat production for 2024–25 is estimated to surpass previous records, yet the government remains cautious about the potential for artificial scarcity and price manipulation, especially given geopolitical and climatic uncertainties affecting global grain trade.
Economists believe the reimposition sends a strong signal to the market that the government is committed to maintaining price stability and food security despite record output.
Further reviews are expected in the coming months based on procurement progress, retail price movements, and stock disclosures by large traders.
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