Stock limit on wheat to go from May 1: Govt

Realising the problem of plenty in wheat stocks, the government has lifted the limit on the quantity millers/ traders can stock. The decision comes into effect from May 1.

The Cabinet On Monday decided to extend stock controls for further period five months, up to September 30, in case of paddy, rice, pulses, edible oils and edible oilseeds.

The country’s granary is overflowing with wheat stocks. Wheat procurement in the last rabi marketing season was at an all-time high of 22.5 million tonnes on account of a bumper crop and high procurement prices. This year’s wheat procurement in top producing states of Punjab and Haryana is set to begin from April 1. As on March 1, the central pool had a wheat stock of 15.27 million tonnes, which is more than sufficient to meet the annual consumption under various public distribution schemes. Even wheat export is banned.

“The decision is going to help the wheat flour industry and the traders. We were not able to procure adequate quantity since there was a stock limit last year. This exposed us to market fluctuation in prices. Now, we can plan our procurement,” said Veena Sharma, joint secretary, Roller Flour Millers’ Federation.

However, a miller pointed out that given the bumper crop this year and huge stocks in government godowns, the interest of private trade could be limited. “Wheat availability is expected round the year and prices should remain stable too,” he said.

According to the estimates by the agriculture ministry, wheat production in the 2008-09 rabi season is likely to be around 77.8 million tonnes compared with a record 78.6 million tonnes last year. This, coupled with a high minimum support price of Rs 1,080 a quintal, could lead to another year of bumper procurement.