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The Print
29-05-2025
- Business
- The Print
Govt extends stock limits on wheat till March 2026 to check hoarding, ensure food security
The stock limit on wheat has been extended despite a record wheat output of 117.50 million tonnes in the 2024-25 crop year (July-June). The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025, issued on May 27, will remain applicable until March 31, 2026, an official statement said. New Delhi, May 29 (PTI) The government has extended stock limits on wheat for traders, wholesalers, retailers and big chain retailers across the country till March next year to manage food security and prevent hoarding and unscrupulous speculation. Under the new regulations, traders and wholesalers can stock up to 3,000 tonnes of wheat, while retailers are limited to 10 tonnes for each retail outlet. Big chain retailers can hold up to 10 tonnes per retail outlet, subject to a maximum of 10 multiplied by their total number of outlets across all retail outlets and depots combined. Processors are permitted to stock 70 per cent of their Monthly Installed Capacity multiplied by the remaining months of FY 2025-26. All wheat stocking entities must declare and update their stock position every Friday on the wheat stock portal at which will be migrated to in due course. Entities found not registered on the portal or violating stock limits will face punitive action under Sections 6 and 7 of the Essential Commodities Act, 1955. Those holding stocks above prescribed limits must bring them within permissible levels within 15 days of the notification. Central and state government officials will closely monitor enforcement to prevent artificial wheat scarcity. The Centre has procured 298.17 lakh tonnes of wheat through state agencies and Food Corporation of India up to May 27, 2025, sufficient to meet requirements of the Public Distribution System, Open Market Sale Scheme and other market intervention programmes. The Department of Food and Public Distribution is maintaining close watch over wheat stock positions to control prices and ensure easy availability across the country, the statement added. PTI LUX MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Indian Express
01-05-2025
- Business
- Indian Express
Punjab's private wheat procurement soars, closes in on 2006 record
Private wheat procurement in Punjab is experiencing a significant surge this year, reaching the highest levels since 2006. The figures are quickly approaching the record numbers set in 2006, the year with the highest private wheat procurement by traders in the state over the past two decades. According to official Punjab Mandi Board data, private traders have procured 9.28 lakh tonnes (lt) of wheat in Punjab as of Wednesday. The only higher private procurement occurred in 2006, when private traders purchased 13.12 lakh tonnes, according to records from the Food Corporation of India (FCI). The year 2007 saw private procurement of 9.18 lakh tonnes. If the trend continues, this season could match or surpass the 2006 record for private procurement, marking a significant shift in Punjab's procurement dynamics. 'We expect that it will reach the 2006 record by the end of the season,' said a senior official familiar with the procurement trends. The wheat procured by private traders forms a substantial share of the 114.16 lt purchased in the ongoing procurement season. The total wheat arrival in the state's mandis stands at 115.57 lt, which means private players account for over 8 per cent of the total purchase—a notable development, given the usual dominance of government procurement agencies in the state. Procurement of wheat is still ongoing in the state, and it will take at least two more weeks to complete. A bumper crop is expected this year in Punjab, as weather conditions remained favourable throughout the wheat-growing season. Private procurement in recent years has been significantly lower: in 2024, it was 7.55 lt; in 2023, it was 4.69 lt; in 2022, it was 6.33 lt; in 2021, it was only 1.14 lt; in 2020, it was 1.93 lt; in 2019, it was 2.80 lt; and in 2018, it was 2.06 lt. There are approximately 70-75 roller flour mills in Punjab, with a daily processing capacity of 7,400 tonnes of wheat, although they typically operate at around 50 per cent capacity. This translates to an annual processing capacity of approximately 15 lt. Millers primarily focus on supplying atta, sooji, and maida within Punjab and to other states. According to the Punjab Market Board (PMB), Punjab millers earlier procured only 25-30% of wheat from within the state. The remaining 70–75 per cent was procured from the FCI's e-auctions under the Open Market Sale Scheme (OMSS) and from other states, such as Uttar Pradesh and Rajasthan, which often supplied wheat at lower prices than the FCI. However, this year, millers have already purchased over 60 per cent of their total wheat requirement from within Punjab. Several factors have contributed to this surge, Naresh Ghai, president of the Punjab Roller Flour Mills Association, told The Indian Express. 'Last year, rates were high—even the FCI under OMSS had opened the tender at Rs 3,100 per quintal, while the MSP was Rs 2,325 per quintal then,' said Ghai, adding that this year, millers preferred to purchase wheat at the MSP of Rs 2,425 per quintal instead because they are apprehensive of higher rate under OMSS. He added that millers are expected to purchase 2–3 lakh tonnes more in the coming days. The remaining 3 lakh tonnes will likely be procured directly from farmers, as many have stored a portion of their produce to sell later to private traders. Some quantity will also be bought under OMSS or sourced from other states.
Mint
28-04-2025
- Business
- Mint
As harvest picks up pace, wheat flour prices fall by ₹5-7 per kg, offering relief to consumers
New Delhi: The fresh arrival of wheat from key producing states—Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Rajasthan and Gujarat—is beginning to ease the pressure on household budgets, with wheat flour (atta) prices declining sharply by ₹ 5-7 per kg over the past month. The softening of prices, as per industry people, could not have come at a better time as policymakers intensify efforts to rein in food inflation. Unbranded atta has seen the most visible price decline, while several branded atta players have reduced prices by ₹ 1.5- ₹ 5 per kg. However, distributors say it may take a few more weeks for these cuts to fully reflect on retail shelves. Wholesale atta prices have also corrected significantly, falling to ₹ 2,900- ₹ 3,000 per quintal in Delhi from ₹ 3,600- ₹ 3,700 a month ago. Navneet Chitlangia, president of the Roller Flour Millers' Federation of India (RFMFI), attributed the price decline to the robust pace of harvesting. "The benefits of the new crop are beginning to flow to consumers. We expect the trend to continue as arrivals strengthen further," he said. The government procurement has gathered momentum. Between 15 March, when procurement began, and 24 April, government agencies had purchased over 19.85 million tonnes (mt) of wheat, up 46% from 13.85 mt procured during the same period last year. For the 2025-26 marketing season, the government is targeting a wheat procurement of 31.2mt, compared to 26.6mt bought in 2024-25. According to the agriculture ministry, wheat production during the 2024-25 rabi season is estimated to reach a record 115.43mt, surpassing the 113.29mt harvested last year. Experts attribute the bumper harvest to conducive weather conditions and the absence of major crop-damaging events this season. In the Delhi wholesale market, wheat is currently trading between ₹ 2,600 and ₹ 2,700 per quintal, compared to ₹ 3,300 a month ago—a substantial correction that analysts believe will provide vital relief to the broader inflation outlook. Retail inflation slowed to 3.34% in March, with food inflation easing sharply to 2.69% year-on-year from 3.75% in February. Economists see the ongoing wheat harvest and strong procurement efforts as key factors that could further cool prices in the coming months. "With a bumper wheat crop expected and robust procurement, we should see a stable-to-softening trend in food inflation. Wheat prices have a direct impact on staples like flour, bread, and biscuits," said Madan Sabnavis, chief economist at Bank of Baroda. This year's wheat harvest is turning out to be a crucial turning point after months of volatility. Wheat prices had started climbing after mid-December 2024 due to dwindling supplies and strong demand from flour mills. By early February, wheat prices had hit a record high, prompting the government to intervene through the Open Market Sale Scheme (OMSS) and regulatory measures such as stock limits on traders and millers. However, the supply situation only began easing after new crop arrivals began mid-March. Under OMSS, the Food Corporation of India (FCI) offloaded 3mt of wheat starting mid-December in FY25, compared to a record 10mt sold to bulk buyers in FY24. Wheat was offered at ₹ 2,325 per quintal, slightly above the official minimum support price (MSP) of ₹ 2,275 for the 2024-25 marketing year. Despite these interventions, the real relief has come only now with the actual arrival of fresh supplies. Retailers confirm that the fall in prices is currently more pronounced for unbranded atta and chakki atta sold in bulk (10kg or 50kg bags) compared with branded packaged atta. "It takes time for branded players to recalibrate their shelf prices even if procurement costs fall. So far, we haven't seen major changes at the retail level," said Dhairyashil Patil, president, All India Consumer Products Distributors' Federation. Branded wheat flour accounts for only 5-8% of India's 45-50mt annual atta market, meaning that most consumers are likely to benefit relatively faster through loose and unbranded flour purchases. Queries sent to major branded players like ITC Ltd and Adani Agri Business Ltd (formerly Adani Wilmar) remained unanswered. Industry watchers caution that products made from wheat, such as bread and biscuits, may not immediately see price cuts. "The prices of secondary products like bread and biscuits won't necessarily come down in perfect sync with wheat prices," Sabnavis added, pointing to processing and packaging costs that remain elevated. First Published: 28 Apr 2025, 08:37 PM IST
