India reduces wheat stock limit to fight food inflation

Published 2023년 12월 8일

Tridge summary

India has lowered the limit on wheat stocks that traders and millers can hold to increase availability of the grain and moderate prices ahead of general elections. The government has also announced additional measures to control food inflation, including halving the wheat stocks of traders and wholesalers and releasing more wheat into the market if needed. India has also banned exports of wheat and non-basmati rice and ordered sugar mills not to use cane juice or syrup to produce ethanol, as well as tightening limits on wheat stocks held by millers, traders, and retailers.

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Original content

NEW DELHI, Dec 8 (Reuters) - India has lowered the limit on wheat stocks that traders and millers can hold to increase availability of the grain and moderate prices, the Food Ministry's top official said on Friday. Indian authorities are concerned about volatile food prices ahead of general elections scheduled for May. Food prices account for almost half of the retail inflation basket and the Government is taking supply-side measures to control food inflation. According to Sanjeev Chopra, secretary of the Ministry of Consumer Affairs, Food and Public Distribution, the Government has halved, to 1,000 tonnes, the wheat stocks of traders and wholesalers and has lowered the inventory limits of millers and retailers. "The idea is that there is no artificial shortage. (...) Whatever people have in their possession has to go to the market, so we have given them 30 days to adapt to the new stock limits. The additional availability will have a cooling effect on prices." Chopra also said ...

Source: Elperiodicodemexico