Due to excellent production and better government procurement, the possibility of imposing stock limit on wheat is less

08-May-2025 01:55 PM

New Delhi. Due to excellent or record wheat production in the country this year, government agencies, traders, stockists, and millers/processors have been able to purchase wheat in large quantities.

Given the smooth supply and availability in the domestic market and the absence of significant price increases, the government is unlikely to impose stock limits on wheat.

Government procurement has already crossed 280 lakh tonnes, which is about 84 percent of the revised target of 332.70 lakh tonnes. If total procurement crosses 300 lakh tonnes, the total availability, including previous stock, will exceed 400 lakh tonnes.

A notable development this season is that private buyers are also purchasing large quantities of wheat directly from farmers, ensuring adequate availability in the market for the coming months.

Although the stock limit on wheat was lifted on 31 March 2025, stakeholders are still required to upload stock data on the government portal every Friday.

Current data indicates that wheat stock reported on the portal in February is 6–7 lakh tonnes higher than the same period last year.

In addition to government stockpiles, large volumes are expected to be available in the open market, and major producers reportedly hold ample reserves.

For the past two years, the government had imposed stock limits to boost supply and control prices. However, given this year's bumper crop and robust procurement from both government and private sectors, the need for such intervention appears minimal.

It is expected that the government will also avoid immediate wheat sales under the Open Market Sale Scheme (OMSS) due to the favorable market conditions.