In a significant move, the Indian government has implemented stockholding limits on wheat, marking the first time in 15 years. This measure, which came into effect immediately, aims to address the escalating prices of this crucial commodity. The restrictions will remain in place until March 2024, serving as a proactive step towards containing the situation.
As part of the Open Market Sale Scheme (OMSS), the government has made a decision to release 1.5 million tonnes of wheat from the central pool to bulk consumers and traders. This initiative, implemented in the first phase, aims to facilitate the availability of wheat in the open market.
Sanjeev Chopra, Food Secretary, said, “There has been an uptick in wheat prices in the past month. There has been an increase of close to 8 per cent at mandi level. Though wholesale and retail prices have not gone up that much, the government has imposed stock limit on wheat.”
Effective until March 31, 2024, a stock limit has been enforced on traders, wholesalers, retailers, major chain retailers, and processors.
Regarding the reduction of wheat import duty, the Secretary affirmed that there are no intentions to modify the policy, citing the abundance of domestic supplies. Furthermore, the ban on wheat exports will remain in place.
“The country has enough stock of wheat. Farmers and traders are holding the stock and there are also unscrupulous elements holding the stock. We are not looking at import as enough stock available in the country,” he said.
In addition to wheat, the government has made the decision to release rice through the Open Market Sale Scheme (OMSS). The specific quantity of rice to be offloaded will be determined at a later stage, the official added.
The official also said that there is no proposal to allow further export of sugar.
