The imposition of storage limit on wheat will have limited impact

24-Jun-2024 05:15 PM

New Delhi. Although the Central Food and Public Distribution Department has issued an order today i.e. on 24 June 2024,

immediately implementing the storage limit (stock limit) on wheat, experts say that this decision will not have any significant impact on the domestic market because the legal units for which this order has been issued already have limited stock of wheat.

There is very little arrival of wheat in the wholesale markets and the millers-processors themselves are demanding the government to allow duty-free import of wheat. A total import duty of 44 percent is applicable on wheat.

The Food Department has fixed a maximum stock of 3000 tonnes of wheat for the trader / wholesaler. Similarly,

the storage limit of wheat for millers / processors has been fixed equal to 70 percent of the monthly accumulated capacity multiplied by the remaining months of 2024-25.

The order states that the firms which have wheat stock more than the prescribed quantity will have to reduce their stock within 30 days to bring it within this limit.

This order will be effective for all states/union territories. There is limited arrival of wheat in the mandis of top producing states like Uttar Pradesh,

Madhya Pradesh, Punjab, Haryana, Rajasthan and Bihar and its price is running higher than the government support price of Rs 2275 per quintal. Government stock has also not yet arrived in the market.