Less increase in the price of wheat and pulses after the implementation of storage limit

04-Jul-2024 04:09 PM

New Delhi. Data from the Department of Consumer Affairs and trade sources show that the storage limit or order implemented by the Central Government with the aim of increasing supply and availability in the domestic sector and curbing the rise in prices has started having some effect.

It is worth noting that the government first implemented storage limits (stock limits) on tur, desi gram and Kabuli gram on June 21 and then on wheat on June 26. The storage limit on pulses will remain effective till September 30, 2024 and the stock limit on wheat will remain effective till March 31, 2025.

According to the data of the Department of Consumer Affairs, the average wholesale market price of wheat at the all-India level increased by 1.3 percent from April 1 to June 26, but since then it has increased marginally by 0.36 percent. However,

private traders say that there has been no significant reduction or softening in prices, but the rise in it has definitely been braked to some extent. A slight increase in the price of wheat was recorded in some areas (mandis).

The reason for this is the low supply of wheat in the mandis and it is difficult for the price of wheat to come down until some big farmers and stockists start selling some part of their huge stock.

The government has said that the traders, stockists and big chain retailers who have wheat stock in excess of the prescribed quantity will have to reduce it to the prescribed limit within one month (30 days) from June 26.
According to trade analysts, the storage limit order has had a greater impact on the pulses market than wheat. The reason for this is that the demand for pulses usually weakens during the summer or summer months.

The government has made the import of all major pulses duty free. This does not include moong as its import is banned. Importers have been instructed not to keep the stock of imported pulses with them for more than 45 days.