To stop the surge in prices, the government on Thursday decreased the stock limit on wheat for dealers, wholesalers, and large-chain retailers from 3,000 tonnes to 2,000 tonnes with immediate effect, according to Sanjeev Chopra, the secretary for food and public distribution. For processors, the quantity remains the same.
Despite having enough stock, wheat prices have been climbing over the past month on the National Commodity & Derivatives Exchange Limited (NCDEX). Speaking to the media on Thursday, Chopra said, “I believe there are some groups which are attempting to create some artificial scarcity, even though there is ample availability of wheat in the country.
The Licencing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023, was released on June 12 and is in effect until December 31.
In the previous month, the price of wheat on the NCDEX increased 4% to Rs. 2,550 a quintal. The grain’s average price throughout all of India increased on Thursday by 1.3% month over month and 10.4% year over year to close to 30 per kg in the retail sector. In the wholesale market, the average price of wheat for all of India was $2,668 per quintal, up 4.2% annually and 0.2% month over month.