The central government has again imposed the stock holding limit on wheat with immediate effect to bring down prices and check hoarding.
It also assured that it is open to exploring all other options to bring down prices, including a review of the import duty.
Presently, the government imposes a 40 per cent import duty on wheat, while the effective duty is almost 44 per cent due to cesses and surcharges.
The decision to re-impose the stock limit that ended in March 2024 was taken even though wheat production in FY24 is expected to be over 112 million tonnes.
Addressing a press conference, food secretary Sanjeev Chopra said that there is no wheat shortage in the country, and the Centre has adequate reserves to meet all requirements.
He said despite this, the stock holding limits are being re-imposed to keep speculators at bay and check hoarding by traders who are holding on to their stocks.
Chopra also said that there is no proposal to lift the ban on wheat or the curbs on rice exports. Under the new rules, retail outlets and individual stores of big chain retailers are allowed to stock up to 10 tonnes of wheat, an official statement said.
Traders, wholesalers, and large depots of big chain retailers face a cap of 3,000 tonnes each.
For processors, the limit is set at 70 per cent of their monthly installed capacity (MIC) multiplied by the remaining months of the 2024-25 financial year.
Those holding stocks exceeding the prescribed limits have been given a 30-day window to comply with the new norms. The decision comes after a high-level meeting, chaired by home affairs and cooperation minister Amit Shah, held last week, where officials were directed to monitor wheat prices closely.
The government had then signalled its readiness to intervene in the market to ensure price stability for consumers.
Chopra, meanwhile, said wheat procurement was lower than the target this year, particularly in Madhya Pradesh, due to some concerns impacting the harvest there, such as lower-than-normal winters and farmers preferring to sell to private trade due to higher prices.
Official data reveals that wheat and wheat flour prices have risen by up to Rs 2 per kg compared to last year.
As of June 20, the average retail price of wheat stood at Rs 30.99 per kg, up from Rs 28.95 a year ago. Wheat flour prices have also climbed to Rs 36.13 per kg against Rs 34.29 last year.
Meanwhile, consumer affairs secretary Nidhi Khare, who was also present at the press conference, said that stock limits imposed on tur and urad have started bearing results and prices have softened by Rs 50-200 per quintal in major centres after the order.
On onions, she said that the government has good stocks of onions and the coming good monsoon should further augment the area. “We have targeted to grow onions in around 3.53 lakh hectares this Kharif as against last year’s acreage of 2.85 lakh hectares and are hopeful that the target will be met,” Khare said.
She said slight late harvesting of Kharif onions is beneficial as it ensures that peak supplies start during the festival season when demand is usually high for the bulb.
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First Published: Jun 24 2024 | 5:56 PM IST
