Centre brings back stock limits on wheat to ensure stable prices ahead of key state polls
New Delhi: The Centre has reimposed stock limits on wheat across the country until 31 March 2026 to prevent hoarding and stabilize prices amid concerns of tightening domestic supplies.
The fresh directive by the ministry of consumer affairs, food and public distribution under the Essential Commodities Act, 1955, sets specific ceilings on wheat stocks that can be held by traders, retailers, large retail chains, and processors, according to a government notification.
The government had decided against allowing wheat exports amid fears of a price surge ahead of upcoming festivals and state assembly elections, Mint reported on 21 May. With assembly elections due in Bihar, Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry, prices of staples like atta (wheat flour), maida (refined flour), and suji (semolina) have become a political priority.
The government's wheat purchase from the farmers in the 2025–26 rabi marketing season (April–June) has crossed 29.81 million tonnes (MT) till 27 May, highest since the 2021-22 season, according to official data. However, the procurement for the central pool this year has fallen short of targets due to erratic weather and lower arrivals in key producing states.
Traders and wholesalers will be allowed to stock a maximum of 3,000 metric tonnes (MT) of wheat, while individual retailers can hold up to 10 MT at each outlet, according to the government's 27 May order. Big chains will be permitted to stock 10 MT per outlet, subject to a cumulative ceiling based on the total number of outlets.
For processors, the limit has been set at 70% of their monthly installed capacity (MIC), multiplied by the remaining months in the current financial year.
These limits are applicable across all states and union territories with immediate effect.
"With the current notification, there would be increase in supply in the market. We expect correction in the prices of wheat from ₹ 50-100 per quintal,'said Navneet Chitlangia, president, Roller Flour Millers Federation of India.
All stakeholders covered under the revised order are required to declare their existing wheat stocks on the government portal. Entities holding wheat stocks above the prescribed thresholds must bring them down within 15 days of the notification, it said.
Government officials said that the aim is to enhance transparency in stockholding and discourage speculative buying that may distort prices. 'It shall be ensured that wheat stock is regularly declared and updated on the portal of this Department,' the order stated.
The imposition of stock limits is the latest in a series of steps taken by the Centre over the past year to curb food inflation, including bans or restrictions on exports of wheat, rice, and onions, as well as measures to improve market transparency and augment buffer stocks.
As of Wednesday, the consumer affairs ministry data showed, the retail price of wheat rose to ₹ 31.24 per kg from ₹ 30.65 per kg a year earlier, while wheat flour (atta) was selling at ₹ 36.71 per kg, up from ₹ 35.87 per kg during the same period last year.
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