Merchants Resist Premature Wheat Stock Restrictions

Traders and Processors Criticize Government’s Early Stock Limits on Wheat

Traders and processors in the wheat industry have raised objections to the government’s decision to impose stock holding limits for wheat despite a strong production and procurement season. They argue that the record output of 117.5 million tonnes and significant procurement activities make the move premature and could disrupt market dynamics.

According to Navneet Chitlangia, president of the Roller Flour Millers Federation of India, the imposition of stock holding limits caught them off guard, especially considering the high levels of production and procurement by the government. Harvesting has just been completed, and the government agencies in Rajasthan and Uttar Pradesh are actively procuring wheat, with ample supplies available in the market.

Traders typically plan their purchases based on a 10-month supply window, waiting for the next crop to be harvested in April of the following year. Therefore, they believe that the imposition of stock holding limits at this stage is premature and could have been delayed until the upcoming festive months.

The latest estimates indicate that wheat output for the 2024-25 crop year is at a record 117.5 million tonnes, representing a 3.7% increase from the previous year. The Food Corporation of India and state government agencies have already purchased 29.81 million tonnes of wheat during the 2025-26 rabi marketing season, exceeding the requirements for public distribution and welfare schemes.

Concerns have been raised about the impact of the stock limits on inflation, with wheat prices rising in line with the 7% increase in the minimum support price. Under the new regulations, traders and wholesalers can hold up to 3,000 tonnes of wheat until March 31, 2026, while retailers are limited to 10 tonnes per outlet.

Government agencies will monitor compliance with these limits to prevent artificial scarcity and ensure price stability in the market. All stakeholders are required to declare their wheat stocks regularly and report any excess holdings to the food ministry for further action.

Overall, the department of food and public distribution is closely monitoring the wheat market to control prices and ensure adequate supply across the country.