India has lowered the stock limit of wheat that traders, processors and retailers can hold to increase the grain’s availability and moderate prices, the food ministry said in a statement on Thursday.
The limit on wheat stocks held by traders and wholesalers was cut to 500 metric tonnes from the earlier limit of 1,000 tonnes. Big chain retailers can hold 500 metric tonnes of grain at their depot down from 1000 until now while processors can have 60% of monthly installed capacity multiplied by the remaining months till April 2024, down from 70% earlier. The world’s second-largest producer of wheat, India restricted exports of the cereal in May 2022 after a severe heatwave reduced the yields pushing prices up. In the following year also, untimely rainfall affected the yield, making the government continue with the ban. The government is also selling wheat in the retail market through Central Co-operative organizations like NAFED, NCCF and Kendriya Bhandar under ‘Bharat Atta’ brand through their physical and mobile outlets, at a subsidized price of Rs 27.50 per kg.
This year, the government is expecting a bumper crop of wheat at least in three states – Punjab, Haryana and Madhya Pradesh, touching a record yield of 114 million tonnes.
