Govt Revises Wheat Stock Limits to Curb Hoarding, Ensure Price Stability

In a move aimed at safeguarding food security and preventing hoarding and speculative trading, the Government of India has revised the wheat stock limits applicable to traders, wholesalers, retailers, big chain retailers, and processors across all States and Union Territories.

The revised limits, notified under the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025, will remain in force until 31st March 2026. The measure comes as part of the Centre’s ongoing strategy to moderate wheat prices ahead of the upcoming festive season.

Revised Wheat Stock Limits

The following changes have been introduced:

• Traders/Wholesalers: Stock limit reduced from 3,000 MT to 2,000 MT.

• Retailers: Stock limit reduced from 10 MT to 8 MT per retail outlet.

• Big Chain Retailers: Limit revised from 10 MT per outlet (subject to the total number of outlets) to 8 MT per outlet under the same condition. The cap applies collectively to both retail outlets and depots.

• Processors: Earlier limit of 70% of Monthly Installed Capacity (MIC) multiplied by the remaining months of FY 2025–26 revised down to 60% of MIC.

All wheat stocking entities are now mandated to declare or update their stock position every Friday on the official wheat stock portal (https://foodstock.dfpd.gov.in). Any violation—including failure to register or non-compliance with stock limits—will invite punitive action under Sections 6 and 7 of the Essential Commodities Act, 1955.

Entities holding wheat stocks above the revised limits are required to align with the prescribed levels within 15 days of the notification.

Monitoring and Enforcement

Both Central and State Government officials will closely monitor compliance to prevent the creation of artificial scarcity in the market. The revised limits are expected to curb speculative stockpiling and ensure a steady flow of wheat to consumers at affordable prices.

Production and Procurement Outlook

India recorded a total wheat production of 1175.07 Lakh Metric Tonnes (LMT) during the 2024–25 crop year, indicating ample availability of the staple grain.

In the Rabi Marketing Season (RMS) 2025–26, the Central Government procured 300.35 LMT of wheat through the Food Corporation of India (FCI) and state procurement agencies. This stock is sufficient to meet the country’s requirements for the Public Distribution System (PDS), Other Welfare Schemes (OWS), and market interventions.

The Department of Food and Public Distribution (DFPD) continues to maintain a close watch on wheat availability and market dynamics. Officials emphasized that these measures are designed to stabilize prices, maintain buffer stock levels, and ensure equitable distribution across the country.

Balancing Farmers’ and Consumers’ Interests

While revising stock limits helps prevent market manipulation, the government has reassured that procurement and buffer stocking levels remain robust enough to protect farmer interests and consumer needs alike. Adequate procurement ensures that farmers receive remunerative prices, while controlled stockholding discourages profiteering by intermediaries.

By lowering the wheat stock limits for traders, retailers, and processors, the government aims to strike a balance between market discipline and food security. The move highlights India’s proactive stance in preventing hoarding, keeping wheat supplies stable, and shielding households from undue price hikes during the festive season and beyond.