Government lowers wheat stock limit for traders and wholesalers to 2,000 tons
The government intervened by deciding to lower the stock limit on wheat to 2,000 tonnes for merchants, wholesalers, and large-chain retailers in an effort to rein in the soaring price of wheat. It used to be 3,000 tonnes. Sanjeev Chopra, secretary of food and public distribution, said that supplies must be decreased in order to reach the new quota by October 12. Sanjeev Chopra said that the decision was made despite there being an adequate supply of wheat available during a media interview on September 14 owing to the increase in wheat prices on the National Commodity & Derivatives Exchange Limited. “Wheat prices on the NCDEX have increased by around 4% in the last month. And we are discovering that, despite the country’s abundant supply of wheat, I believe certain forces are attempting to create fake scarcity,” he stated. Even while retail prices are presently stable, he said, “We anticipate that with this increase in NCDEX prices, there may be a reflection of these prices in the retail market.”
It is noteworthy that the administration decided to lower the restriction after a limit of 3,000 tonnes was declared in June. According to Sanjeev Chopra, the restriction was put in place since the next harvest won’t begin until April 2024. The harvest is now three months away, therefore it makes sense in the “natural scheme of things” to lower the limit. In order to prevent “hoarding for the next financial year” and to avoid dumping any extra goods, this is important.
For those who are unaware, wheat prices on the NCDEX rose by 4% last month to Rs 2,550 a quintal. As a consequence, the average grain price increased by 1.3% each month and 10.4% annually. In his conversation, Sanjeev Chopra also said that the nation had 25.5 million tonnes of wheat on hand against a need for 20.2 million tonnes. Also available for market intervention is a surplus of 3 million tonnes of wheat over the buffer reserves. On the other side, 5.7 million more tonnes were used to intervene in the market.
