The order of storage limit on wheat came into effect early this time

30-May-2025 12:06 PM

New Delhi. To increase the supply and availability of wheat in the domestic market and to curb the rise in prices, the Union Food Ministry implemented the order of storage limit on this important food grain on 28 May this year itself, whereas it has usually been the practice to implement it in June or during the lean or off-season months.

Under the storage limit order of the current year, a maximum stock of 3000 tonnes of wheat has been fixed for large traders and wholesalers, while the limit for retail traders has been set at 10 tonnes.

Similarly, big chain retailers are allowed to keep a maximum stock of 10 tonnes of wheat at each outlet, with permission to store 10 times more wheat at all their depots combined.

Processors are allowed to stock wheat equivalent to 70 percent of their total milling capacity. This storage limit order will remain in force until 31 March 2026. Wheat stock in excess of the prescribed quantity must be sold within 15 days.

In previous years, the government had imposed storage limit orders on wheat on 12 June, 14 September, and 8 December in 2023, and on 8 February, 24 June, 13 September, and 11 December in 2024. In 2025, the stock limit was first imposed on 20 February and has now been reintroduced on 28 May.

Typically, the stock limit duration is set until 31 March, but it can be lifted earlier depending on improvements in the market situation. At present, the wheat supply season is ongoing.

The imposition of the stock limit was already anticipated, as the government is aware that private sector purchases have been strong this season and regular release of wheat into the market is essential.

However, analysts believe that despite the enforcement of stock limits, there may not be a significant immediate impact on wheat prices.