September 18, 2023

 

India reduces wheat stock limits for traders, no plan to scrap import duty

 

India has announced a reduction in the permissible limit for wheat stocks held by traders and millers, while reaffirming that there are currently no immediate plans to eliminate the import duty on wheat, Yahoo! Finance reported.

 

Sanjeev Chopra, the highest-ranking civil servant at India's Ministry of Consumer Affairs, Food and Public Distribution, said that traders, wholesalers, and major retailers will now be allowed to retain only 2,000 tonnes of wheat, down from the previous limit of 3,000 tonnes.

 

India has indicated its readiness to release additional wheat stocks into the open market if deemed necessary to control prices, particularly during the upcoming festive season.

 

Chopra said that there is an ample supply of wheat, rice, and sugar within the country, but unscrupulous individuals are attempting to exploit rumours surrounding supplies.

 

Following a decline in wheat production, India imposed a ban on wheat exports last year.

 

Chopra said that these recent export limitations have been instrumental in ensuring the sufficient availability of essential staples. He expressed concern about the creation of an artificial shortage perception within the country despite ample stocks.

 

His statements should alleviate worries regarding potential supply constraints during the series of festivals scheduled for October and November.

 

India holds the distinction of being the world's second-largest producer of sugar, wheat, and rice.

 

Currently, wheat prices are hovering near their highest levels in seven months, while sugar prices reached their highest point in six years.

 

-      Yahoo! Finance