Removal of Wheat Stock Limits Likely to Strengthen Prices

06-Feb-2026 10:51 AM

New Delhi:  With the supply and availability situation in the domestic market easing and prices remaining largely stable, the central government has withdrawn the stock limit order on wheat. This is expected to lead to some improvement in the price of this important food grain.

While this decision, taken before the festive season, may have a positive impact on the domestic market, a sharp increase in prices is unlikely as the next wheat harvest is expected to be excellent.

According to a circular issued by the Union Ministry of Food, Consumer Affairs and Public Distribution, the stock limit order on wheat was implemented on May 27, 2025, and all concerned parties were asked to regularly provide details of their stock on the government portal.

This data shows that the industry and trade sector has a stock of approximately 81 lakh tonnes of wheat, which is about 30 lakh tonnes more than last year.

Sufficient stock of wheat is also available in government warehouses, ensuring that there is no threat to food security.

The arrival of new wheat crops is expected to begin sporadically from the second half of next month, with a strong supply starting in April.

It is understood that an improvement in wholesale wheat prices will also help the Food Corporation of India (FCI) increase the sale of its stock under the Open Market Sale Scheme (OMSS).

Demand and consumption of wheat products are expected to increase due to the festive and wedding seasons.

It is worth noting that the government has already permitted the commercial export of 5 lakh tonnes of wheat products. The industry and trade sector has welcomed the decision to remove the stock limits.