India Reimposes Wheat Stock Limits to Stabilize Prices

The Indian government has reinstated wheat stock limits across the country until March 31, 2026, to prevent hoarding and stabilize prices amid concerns over shrinking domestic supplies. The new directive, issued under the Essential Commodities Act of 1955, sets specific caps on wheat stocks for traders, retailers, and processors.

Traders and wholesalers are permitted to hold up to 3,000 metric tonnes of wheat, while individual retailers can store up to 10 metric tonnes per outlet, and large retail chains are allowed 10 metric tonnes per store, subject to a cumulative cap based on the number of outlets. Processors are limited to 70% of their monthly installed capacity, multiplied by the remaining months in the current financial year.

All entities must declare their stocks on the government portal and reduce them to the prescribed limits within 15 days. According to the Ministry of Consumer Affairs, the retail price of wheat has risen to ₹31.24 per kg from ₹30.65 a year ago, with wheat flour (atta) at ₹36.71 per kg. These measures are expected to enhance transparency and reduce wheat prices by ₹50–100 per quintal.

This year, India anticipates a robust wheat harvest, sufficient to meet domestic demand without imports. The Food Corporation of India (FCI) has already procured 29.7 million tonnes of the new crop, the highest in four years. Food Minister Pralhad Joshi projects total procurement could reach 32–32.5 million tonnes, which, combined with existing stocks of 11.8 million tonnes, far exceeds the annual requirement of 18.4 million tonnes for the world’s largest food welfare program.

Tags: wheat, India, stocks