Wheat Stock Limit for Food Security
Context:
To ensure food security and curb hoarding and speculative activities, the Government of India has implemented stock limits on wheat across all States and Union Territories until March 31, 2025.
Relevance:
GS-03 (Economy)
Key Details:
- Objective: The move aims to manage food security and prevent hoarding and unscrupulous speculation in the wheat market.
- Legislation: The Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024, came into effect on June 24, 2024.
- Duration: The order is effective immediately and will remain in force until March 31, 2025.
Stock Limits Imposed:
- Traders/Wholesalers: Maximum limit of 3000 metric tons (MT).
- Retailers: Maximum limit of 10 MT per retail outlet.
- Big Chain Retailers: 10 MT per outlet and 3000 MT across all their depots.
- Processors: Maximum of 70% of Monthly Installed Capacity (MIC) multiplied by the remaining months of the fiscal year 2024-25.
Compliance:
- Adjustment Period: Entities holding stocks above the prescribed limits must reduce their stock to the permissible level within 30 days of the notification.
Significance:
The imposition of stock limits is a strategic measure by the government to ensure the availability and fair distribution of wheat, mitigate potential price hikes, and maintain market stability. This action is a critical step in safeguarding the nation’s food security and preventing market manipulation by traders and processors.
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