GOI Imposes Wheat Stock Limit To Arrest Price Rise

1. GOI Imposes Wheat Stock Limit To Arrest Price Rise GOI Imposes Wheat Stock Limit To Arrest Price Rise Located in Asia, India is the second largest wheat producer in the world, behind China and the country harvests bulk volumes of wheat every year. Cool climatic conditions and medium rainfall support wheat cultivation in the Asian nation. However, despite this India fails to rank among the top 10 wheat exporters of the world. A majority of wheat produced is consumed domestically only and owing to high consumption needs, the Asian nation contribute a meager 3% in the total global wheat trade. However, the demand for Indian wheat shot up in the aftermath of Russia-Ukraine war and with a view to calm down soaring prices and ensure adequate stocks for domestic consumption, the Government of India banned exports of wheat and wheat flour in May 2022, while keeping doors open for G2G deals. The restrictions imposed by the GOI last May still remains in place and in its latest move to arrest rising prices of wheat in the domestic markets of the country, the government has decided to impose limit on the volume of wheat, traders can hold. Statements By The Officials Statements By The Officials Ever since the market became volatile early last year, the authorities have been doing everything within their scope to calm down prices and relieve the billions of Indian citizens.

2. From restricting exports of wheat and wheat flour by private wheat exporters in May 2022 to procuring wheat via e-auction, the authorities concerned have been actively involved to relieve the wheat consuming people of the country. However, all this have failed to fetch anticipated results. Domestic consumers often complain of the sky high price of the staple and the market players call the GOI’s wheat export ban a failure. Amidst all this, authorities feel that unfair trade practices are the primary factors behind price rise. “Unscrupulous elements are hoarding wheat stocks and that’s why prices are rising” Food Secretary, Sanjeev Chopra said in a statement. Believing the same, authorities have flung into action and in an attempt to cool down prices, a limit has been imposed on the volume of wheat, traders can hold themselves. Other Initiatives Other Initiatives Apart from imposing stock holding limit to arrest the price rise of the staple, the Government of India (GOI) have also decided to provide 1.5 million tonnes of wheat to bulk consumers such as flour millers, in an attempt to cool down prices which have risen by 8 per cent in a month. The Bottom Line The Bottom Line Since May 2022, the authorities concerned are making every possible effort to ensure adequate supplies remain for domestic consumption and the prices of wheat don’t pinch the pockets of common people. However, despite these, the prices of wheat still continue to rise and reports of the same circulate in the market most often than not. In the latest bid to cool prices of wheat, the GOI has decided to impose limit on the volume of wheat that traders can hold themselves along with providing 1.5 million tonnes of the staple to bulk consumers such as flour millers. If you are a wheat exporter looking to export bulk wheat or are a wheat importer looking to import bulk wheat, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform, you can connect and conduct bulk trade of food and agro-commodities with ease. To register as a seller, click here. To register as a buyer, click here. To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.