Stock Limit Change Has Little Impact on Wheat Prices
29-Aug-2025 03:44 PM
New Delhi. The price of wheat in the major wholesale markets of the country has remained almost stable with normal fluctuations and it appears that the recent change in its stock limit by the Central Government has not had any significant effect on the market. Similarly, no significant change was seen in the prices of rice and maize and the demand for it also remained limited.
On the previous day, the price of wheat remained stable at Rs 2610-2615 per quintal in Kota Mandi of Rajasthan, while the arrival of wheat decreased from 8 thousand sacks to 7 thousand sacks. In fact, heavy rains and floods are continuing in Rajasthan, due to which farmers are facing a lot of difficulty in reaching the markets with their goods.
The weather condition is not favorable. The Meteorological Department has expressed the possibility of heavy rains in eastern Rajasthan during the next seven days. According to trade analysts, the price of wheat is expected to remain around the current level in Kota Mandi for the next 5-10 days.
On the other hand, the price of wheat remained stable at Rs 2800/2825 per quintal in Vashi market of Navi Mumbai. According to analysts, no effect of the reduction in stock limit is being seen on the market.
It appears that the reduction in storage limit is merely a warning to multinational companies and at the same time an indication to start the process of selling wheat under the Open Market Sale Scheme (OMSS).
The government wants to see whether traders / stockists have limited stock of wheat or unlimited reserves. After the open scenario comes out, it will be easy for the government to take a decision to sell wheat through OMSS.
It is worth mentioning that under the new storage limit order, the maximum level of wheat stock for big traders and wholesalers has been reduced from 3000 tonnes to 2000 tonnes.
The maximum storage limit of wheat for retail traders and big chain retailers has been reduced from 10 tonnes to 8 tonnes, while for processors the wheat stock has now been fixed at 60 per cent of the monthly irrigated capacity as against 70 per cent.
With a series of festivals in September, wheat prices are expected to rise by Rs 50-100 per quintal and trade analysts believe that after the market picks up, the government may start selling wheat from its stocks under OMSS.