India imposes stock limit on wheat to tame surging food prices

The Indian government has imposed a cap on the amount of wheat stocks traders and retailers can keep in the country as part of its efforts to rein in wheat stocks. Cereal price hike. Sanjeev Chopra, Secretary of Food and General Distribution, told reporters Monday night that the stock limit will be in effect until March 31, 2024.

Traders and wholesalers cannot hold more than 3,000 tons of wheat, while retailers can only hold up to 10 tons of wheat stock.

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Retail chains such as Reliance, More or D-Marts can have a maximum inventory of 10 tons per outlet while the maximum inventory in all their warehouses is 3000 tons.

Flour Mills

Wheat processors such as flour mills can have wheat at 75 percent of their annual installed capacity or an amount equal to the monthly installed capacity multiplied by the remaining months of the current fiscal year, whichever is less.

In addition, it will offer 1.5 million tons of wheat on the market under the Open Market Sale Scheme (OMSS). Wheat reserve rice to be offered under OMSS is US$2,150 for fair medium quality and US$2,125 for offerings under comfort specification.

The inventory limit has not yet been enforced Wheat prices are beginning to rise across the yards of the Agricultural Produce Marketing Committee (APMC) in the country.

The center also plans to offload rice under the OMSS at a reserve price of $3,100 per quintal and the decision on the amount to be offered will be announced shortly. Chopra said the country has Ample stocks of wheat.