India requires weekly reporting of wheat stocks to prevent hoarding
Published on: March 29, 2024.
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India Implements New Measures to Prevent Wheat Hoarding and Price Spikes
In an effort to prevent hoarding and price spikes of wheat, India has introduced new measures that require traders, major retailers, and food processors to declare their wheat stocks every Friday starting in April. This move comes as India, the world’s second-largest wheat consumer, has been facing challenges due to heat waves that have resulted in reduced production for two consecutive years. As a result, the government has been selling record volumes of wheat to boost domestic supplies.
To regulate wheat prices, India had previously imposed a limit on the amount of wheat stock that traders could hold. However, this limit is set to expire on March 31st. As a substitute, traders will now be required to declare their wheat stocks on a weekly basis. The government has stated that this measure is designed to manage overall food security and prevent hoarding and unscrupulous speculation in the market.
The Indian government aims to replenish wheat stocks by increasing procurement this year. To effectively monitor private buying and facilitate procurement, it is important for the government to have accurate information on wheat stocks held by traders. By implementing this new requirement, the government can closely monitor the situation and potentially reimpose stock limits if necessary.
According to a trader who requested anonymity, the government’s move is an indication of its commitment to ensuring sufficient wheat supplies. The trader explained that if needed, the government could reimpose the stock limit to further facilitate procurement.
As of the beginning of this month, wheat inventories in government warehouses stood at 9.7 million metric tons, the lowest level since 2017. In 2023, the government purchased 26.2 million tons of wheat from local farmers, which fell short of its target of 34.15 million tons.
Overall, these new measures implemented by the Indian government aim to stabilize wheat prices, ensure food security, and prevent market speculation. By closely monitoring wheat stocks, the government can effectively manage the procurement process and maintain adequate supplies to meet the country’s demands.
Source: [Zawya](https://www.zawya.com)
