To regulate wheat prices and prevent hoarding, the government has implemented new storage limits for traders and retailers. The decision aims to stabilize the market and protect consumers from price fluctuations. Despite a record wheat production of 1132 lakh metric tons in Rabi 2024, prices continued to fluctuate. To address this, the central government has revised storage limits for traders, processors, and retail chains, which will remain in effect until March 31, 2025.
The new rule, all traders must update their weekly stock reports online to avoid strict action. Will this regulation impact the market? Will it lead to lower wheat prices? Let’s analyze its key aspects.
To strengthen food security and curb hoarding and speculation, the central government has imposed wheat storage limits for traders, wholesalers, retailers, large retail chains, and processors.
To regulate wheat prices, the Indian government has revised the storage limits as follows:
| Entity | Previous Storage Limit | Revised Storage Limit |
| Traders/Wholesalers | 1000 MT | 250 MT |
| Retailers | 5 MT per store | 4 MT per store |
| Large Retail Chains | 5 MT per store, max (5 × total stores) | 4 MT per store, max (4 × total stores) |
| Processors | 50% of Monthly Installed Capacity (MIC) × remaining months till April 2025 | 50% of Monthly Installed Capacity (MIC) × remaining months till April 2025 |
Mandatory Registration for Storage: All wheat traders and storage entities must register on the Wheat Stock Limit Portal (https://evegoils.nic.in/wsp/login) and update their stock status every Friday.
Strict Action for Violations:
The government has issued a stern warning that traders and entities failing to register or violating storage limits will face penalties under Sections 6 and 7 of the Essential Commodities Act, 1955.
The new wheat storage limits are a crucial step toward preventing hoarding and controlling price fluctuations. By reducing storage limits and enforcing strict monitoring, the government aims to ensure stable wheat prices and protect consumers from unexpected price hikes.
