The Centre on Monday imposed a stockholding limit on wheat to contain price rise even as it expects the prices of green vegetables, potato and onions to cool down as the heatwave has subsided over large parts of the country.Food secretary Sanjeev Chopra hinted at the possibility of removing import duty on wheat, saying the government is open to all options to keep prices under control.
Wheat prices in retail markets are ruling 6% higher than the comparable period of previous year, despite the government’s claim of a bumper crop.
“I want to dispel the shortage of wheat in the country,” Chopra said, adding that the stock limit has been imposed to reduce hoarding.
For wheat, the stock limit has been imposed from June 24 till March 31, 2025.
Traders and wholesaler can stock up to 3,000 metric tonnes (mt) while retailer can stock 10 mt at each outlet, a big chain retailer can stock 10 mt for each outlet and a maximum of 3,000 mt at all its depots, and processors can have 70% of monthly installed capacity (MIC) multiplied by remaining months of 2024-25.
The stock limit has been imposed from June 24 till March 31, 2025.
Meanwhile, the price of onion rose to Rs 3,018.75 per quintal in the wholesale market on Sunday, the government’s data showed. Potato price touched Rs 2,497.03 per quintal against Rs 1,657.31 a year ago.
“The severe heatwave across the country reduced the arrival of green vegetables, putting pressure on potatoes and onions,” consumer affairs secretary Nidhi Khare said, adding that things should change very soon.
Production of onions and potatoes took a hit last year due to erratic rainfall and weather conditions. Production of onion in 2023-24 (first advance estimates) is estimated to be around 254.73 lakh tonnes, down from around 302.08 lakh tonnes in the previous year. Potato output, too, is expected to have fallen in 2023-24 (first advance estimates) to around 589.94 lakh tonnes from around 601.42 lakh tonnes in 2022-23.
In the case of wheat, the opening stock on April 1, 2024, was 75 lakh met ..
While the government procured 266 lmt of wheat last year, it has already procured 262 lmt this year and the procurement is still on, he said.
“There is not much stock with the trade on their books as the procurement by private players was restricted due to the ongoing government procurement,” agricultural economist Deepak Pareek said. “As such, we can expect only a slight sentimental correction in the markets.”
“There is not much stock with the trade on their books as the procurement by private players was restricted due to the ongoing government procurement,” agricultural economist Deepak Pareek said. “As such, we can expect only a slight sentimental correction in the markets.”
Trade insiders expect wheat prices to remain firm as they believe its production is much lower than the government’s estimate.
“If the government wants to control prices, then it should increase the supply of wh ..
Source Name : Economic Times