The government has implemented regulations on the quantity of wheat that traders can store, and it is considering the reduction or elimination of import duties on wheat to prevent price escalation, as disclosed by a senior government official on Monday.
India, the world's second-largest wheat producer, has witnessed recent price hikes due to supply uncertainties.
"Imposing stock limits is just one step. We have various other strategies to ensure that wheat prices remain stable," stated Sanjeev Chopra, Secretary of the Department of Food and Public Distribution.
Chopra also affirmed that there is an ample supply of wheat available. Over the past year, wheat prices have increased by 5.5-6%. Cereal consumer inflation was notably high at 8.7% in August compared to the previous year.
As of April, wheat stocks in state warehouses had dwindled to 7.5 million metric tons, marking the lowest level in 16 years. To curb rising prices, the government sold a record 10 million tons to flour millers and biscuit manufacturers. At the beginning of April 2023, government warehouses held 8.2 million metric tons of wheat.
Retailers and other entities are required to submit weekly price reports through the portal managed by the Department of Food and Public Distribution (DFPD).
"They have been given a 30-day window to comply with the updated limits, which are similar to those instituted last year," Chopra added.
The limits specify that wholesalers can store up to 3,000 tonnes, individual retailers up to 10 tonnes, and each outlet up to 10 tonnes, with a maximum of 3,000 tonnes for large chains.
India had imposed a ban on wheat exports in 2022, and according to Chopra, there are no immediate plans to lift this restriction. Similarly, there are no proposals to ease export constraints on sugar and rice.
India holds the distinction of being the world's largest rice exporter and the second-largest producer of sugar.
