NEW DELHI: Despite implementing a series of measures to mitigate the rising price of wheat in an election year, the price of wheat has not decreased as expected. Now, the government has decided to further impose stock limits on wholesale traders, retailers, and processors to enhance the availability of wheat in the open market. The new order will be applicable until April 2024.
It will reduce the current stock limit from 1000 MT to 500 MT and limit the stock of big retail chain depots from 1000 MT to 500 MT and reduces the stock limit of processors from 70% to 60% of monthly installed capacity until April 2024.
The government order directs traders, retailers, wholesalers, and big chain retailers to register on the wheat stock limit portal and update their position every Friday.
The government has warned violators of stock limits with suitable punitive action under Sections 6 & 7 of the Essential Commodities Act, 1955. These sections impose at least a year of imprisonment and a fine, and also forfeiture of properties such as animals, vessels, or transport carrying the commodity. Experts say the government is concerned with wheat procurement, which has experienced shortfalls in two consecutive years due to adverse weather conditions.