Centre cuts wheat stock limit for traders to keep prices in check

August 26, 2025

New Delhi: In an effort to keep wheat prices stable ahead of the upcoming festive season, the Central Government has announced revised stock limits for wholesalers, retailers, and processors across all States and Union Territories. These revised limits will remain in force until March 31, 2026.

New Stock Limits for Wholesalers, Retailers, and Processors

The stock limit for wheat held by wholesalers has been reduced from 3,000 metric tonnes (MT) to 2,000 MT. For retailers, the limit has been brought down from 10 MT to 8 MT per retail outlet. In the case of processors, the permissible stock is now set at 60% of their monthly installed capacity (MIC) multiplied by the remaining months of the financial year 2025-26, down from the earlier 70%.

Monitoring and Compliance Measures

To ensure transparency and prevent hoarding, all wheat stocking entities must declare or update their stock position every Friday on the wheat stock portal . Any violations, including failure to register or exceeding the set limits, will invite punitive action under Sections 6 and 7 of the Essential Commodities Act, 1955.

Entities holding excess stocks must bring them down to the prescribed limits within 15 days of notification. Both Central and State officials will actively monitor compliance to avoid artificial scarcity.

Adequate Wheat Availability in the Country

India recorded a total wheat production of 1,175.07 lakh metric tonnes (LMT) in the 2024-25 crop year, ensuring ample supply. The government has already procured 300.35 LMT of wheat in the 2025-26 Rabi marketing season through state agencies and the Food Corporation of India (FCI).

This quantity is sufficient to meet the requirements of the Public Distribution System (PDS) and other market interventions. The Department of Food and Public Distribution continues to closely track wheat stock positions to control prices and maintain smooth availability nationwide.