Category: Gold News

Government seeks weekly reports on wheat stocks to tackle hoarding

The government has made it mandatory for traders, major retailers, and food processors to declare their wheat stocks weekly to prevent hoarding and price spikes.

India, the world’s second-largest wheat consumer, has been endeavouring to control wheat prices following consecutive years of production decline due to heat waves. Subsequently, the government had to release unprecedented quantities to bolster domestic stocks.

India previously enforced restrictions on the amount of wheat stock traders could retain to stabilise prices. However, with the expiration of this limit scheduled for March 31st, traders are now required to disclose their wheat stocks, as announced by the government.

The government has said that the measure is aimed to “manage overall food security and prevent hoarding and unscrupulous speculation”.

The government aims to boost wheat stocks by ramping up procurement efforts this year, with a focus on monitoring private purchases for efficiency, Reuters reported quoting a trader.

“In case of necessity, the government retains the option to reapply stock limits to facilitate procurement,” the trader added.

Wheat inventories in government warehouses fell to 9.7 million metric tons at the beginning of this month, marking the lowest level since 2017.

In 2023, the government purchased 26.2 million tons of wheat from local farmers, falling short of its target of 34.15 million tons.

With inputs from Reuters

Published By:

Koustav Das

Published On:

Mar 29, 2024

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