The government on September 14 further reduced the stock limit on wheat traders, wholesalers and big chain retailers to 2,000 tonnes from 3,000 tonnes with immediate effect to control wheat prices, which are showing an uptick again after being stable for some time.
Announcing the move, food secretary Sanjeev Chopra said that retail prices of key essential food items, especially wheat, rice, sugar, and edible oils, were unlikely to see any sharp rise in the upcoming festival season as the country had adequate supply and the government was keeping a close vigil on hoarders.
“My analysis is that in the upcoming festival season, I do not see any sharp upswing in prices of the commodities that we deal with, whether it is wheat or rice or sugar or edible oils,” Chopra told reporters.
He said there was enough sugar available in the country, and recent rains in Maharashtra and Karnataka should help boost production.
India has around 8.5 million tonnes of sugar, which is adequate to meet 3.5 months of demand, he added.
On rice, Chopra said the price increase of 10 per cent in the last few weeks was on the government’s radar and it would have been more had the export curbs not been in place.
He also expected a bumper paddy crop this season and said there won’t be any shortage anywhere.
The government had on June 12 imposed a stock holding limit of 3,000 tonnes on wheat traders or wholesalers, 10 tonnes on retailers, 10 tonnes for each outlet of big chain retailers, and 3,000 tonnes at all their depots.
