Govt targets hoarders, cuts pvt wheat stock limits again

Move comes after the consumer food price index rose to 9.5% in Dec from 8.7% in November

- Puja Das

The Union government has imposed another round of curbs on private wheat stocks, drastically lowering the limit for the second time since December as it seeks to prevent hoarding and speculation that could spike prices.

The limit for traders and wholesalers has been squeezed to 500 tonnes of wheat, from 1,000 tonnes earlier, the government said on Thursday.

"Officials of Central and state governments will be closely monitoring enforcement of these stock limits to ensure that no artificial scarcity of wheat is created in the country," the Ministry of Consumer Affairs, food and Public Distribution said.

The government has taken a series of measures to tame food inflation and ensure availability of key kitchen staples ahead of the upcoming national election.

Big retail chains can continue to hold up to five tonnes of wheat in each depot. But the overall stock they can hold across all their depots has been halved to 500 tonnes.