Govt withdraws power of states to put limits on wheat stocks

The Union Cabinet today decided not to include wheat among products for which states can impose limits up to which traders can stock. However, powers of the states to take de-hoarding measures for some other farm products have been extended their till September 2009.

In August 2006, the Centre had allowed States to put stock limits on wheat and pulses to check spiralling prices. The notification, initially valid for six months, had been extended from time to time. As the notification was valid till April 30, 2009, the Government has extended it till September only for pulses, excluding wheat.

The government decided to extend the validity of the notifications till September 30, 2009, which empowered states to take effective action for undertaking de-hoarding operations under the Essential Commodities Act, P Chidambaram home minister told reporters after the Cabinet meeting. The stock limit order for rice, edible oils and oilseeds, issued on April 7, 2008, was to expire on  April 6 this year. Likewise, the notification for paddy was to expire on April 30.