Wheat Stock Limit Imposed: Centre May Cut Import Duty

New Delhi, Jun 24 (PTI) The Centre on Monday imposed limits on wheat stocks that wholesalers, retailers and processors can keep with them in order to prevent hoarding and control prices.

The stock limits on wheat will be valid till March 31, 2025.

The Centre also ruled out any proposal to lift the ban on exports of wheat and said it might consider other policy options including reduction in import duty on the food grain, if needed, to keep retail prices under check.

At present, there is a 40 per cent import duty on wheat.

Announcing the decision, Union Food Secretary Sanjeev Chopra asserted that there is adequate availability of wheat in the country and the decision has been taken to prevent market speculations and hoarding of the foodgrain.

"I want to dispel the shortage of wheat in the country... we want prices of wheat to be stable," Chopra said.

Last week, the Centre imposed stock limits on tur and chana dals to check prices.

Chopra said the stock limits would be applicable to traders/wholesalers, retailers, big chain retailers and processors for all States and Union Territories. They would have to declare wheat stocks every Friday on a portal.

In case the stock held by them are higher than the prescribed limit then they have to bring the same to the prescribed stock limits within 30 days of issue of this notification.

According to an official statement, The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024 has been issued with effect from 24th June 2024 and will be applicable until March 31, 2025 for all States and Union Territories..

Stock limits will be applicable to each entity individually such as traders/wholesaler- 3000 tonnes; retailer- 10 tonnes for each of the retail outlets; big chain retailer- 10 tonnes for each outlet and 3000 tonnes at all their depots and processors- 70 per cent of their monthly installed capacity multiplied by remaining months of FY 2024-25.

Earlier this month, the Union Agriculture Ministry revised upward wheat production at a record 112.92 million tonnes for the 2023-24 crop year (July-June) in its third estimate. The wheat output stood at 110.55 million tonnes in the 2022-23 crop year.

Last week, the food ministry said that about 266 lakh tonnes of wheat had been procured till June 18 of the 2024-25 marketing year (April-March) against a procurement of 262 lakh tonnes in 2023-24.

Chopra also informed that the opening stock of wheat was 82 lakh metric tonnes (LMT) on April 1, 2023, while it was 75 LMT on April 1, 2024.

Therefore the shortage of wheat (in the opening stock) is just 3 LMT, Chopra explained.

After meeting the requirement for food law and other Welfare Schemes, which is about 184 lakh tonnes, sufficient stock of wheat is available to undertake market interventions, as and when required, it had said.

Chopra explained that the stock limit has been imposed in view of recent media reports that the prices of essential commodities are increasing including wheat.

He pointed out that the stock limit has been imposed to reduce hoarding and noted that there are many tools (to keep a tab on retail prices) and stock limit is one of such tools.

On sugar, Chopra said the government is not considering any proposal to allow exports.

In the current 2023-24 sugar marketing year (October-September), the Centre has not issued any permits to mills for exports.

Consumer Affairs Secretary Nidhi Khare said the government's decision to impose the stock limit on tur and chana has led to some decline in retail prices of these two dals.