Time Ripe to Lift Controls on Wheat and Pulses
16-Jul-2025 12:32 PM
New Delhi. With a sharp decline in food inflation and improving supply and availability conditions, it is now time for the government to seriously consider lifting the controls imposed on wheat and pulses.
As per the latest data, food inflation in June 2025 dropped to its lowest level in the past six years, with the last such level recorded in February 2019.
The inflation rate for wheat declined from 6.43 percent in May to 5.44 percent in June. In many mandis, wheat prices have fallen close to the minimum support price (MSP).
Supply conditions remain smooth, and prices are either stable or showing a softening trend. Farmers are struggling to get fair prices for their produce, and due to the ongoing stock limits, traders and stockists are unable to buy in adequate quantities. These storage limits now seem irrelevant. The government itself holds a large wheat stock that is enough to regulate any price spikes in the market.
Similarly, inflation in pulses has been on a downward trend since February 2025 and dropped to 11.76 percent in June — its fifth straight month of decline.
This is a sharp contrast from August 2024, when it peaked at 113 percent. A significant decline of 25.11 percent was recorded in tur prices. The wholesale market prices of most major pulses — including tuvar, urad, moong, lentils, and gram — have dropped to or below MSP levels.
The continued import of cheap pulses from abroad has also played a key role in stabilizing prices. However, traders and millers are still required to report their stock details weekly on a government portal — a control that seems unnecessary in the present market scenario.
Gaurav Gupta, Vice President of the Delhi Grain Merchants Association (DGMA), recently raised the issue through an open letter, urging the government to lift unnecessary restrictions. He pointed out that the fall in food grain prices is causing losses for farmers.
Meanwhile, inflation in mustard oil and refined oil remained high at 18.28 percent and 23.55 percent respectively, largely due to elevated global prices.