Govt rules weekly reporting of wheat inventories to amplify food security measures

All major chain stores, food processors, retailers, wholesalers, and dealers are required by law to declare their wheat inventories to the government on a Friday. The goal of this measure is to prevent market instability through speculative activity and to ensure food security by preventing hoarding.

Commencing in April, these organizations are mandated by official proclamation to disclose their wheat stock every Friday on the government portal. March 31st is the deadline for the current wheat stockholding cap.

Keeping the government’s granaries in order, the Food Corp of India (FCI) has 7.71 million tonnes (mt) of wheat in its possession as of March 27. In 2008, wheat stocks dropped to 5.8 million tons, the lowest point since 2008.

The updated cap for each outlet for merchants was lowered from 10 tonnes to 5 tonnes. Large chain stores were permitted to keep 1,000 tons of inventory in all of their depots and 5 tons of inventory in each of their stores. It was 2,000 tonnes and 10 tonnes, respectively, earlier.

According to the government, companies that have stock levels over the prescribed limit are required to decrease their stock levels to conform with the specified restrictions within a 30-day period from the date of notification.

India, the second-largest consumer of wheat worldwide after China, has had difficulty controlling wheat prices as a result of lower harvests brought on by heatwaves that have occurred back-to-back years.

Food inflation remained high in February, according to data issued this month by the National Statistical Office, even though the consumer price index-based inflation rate decreased little to 5.09%.

The average price of rice in all of India as of Friday was ₹44.05 per kilogram, 12.75% more than the same time last year. Atta prices increased by about 5% to ₹36.23 per kg, as reported by the consumer affairs department.