India lifts wheat stock limits on rising supplies

While national wheat supplies appear robust, Punjab is confronting a pressing storage shortfall as its grain facilities near full capacity.

INDIA – The Indian government has removed stockholding limits on wheat for traders, wholesalers and retailers with immediate effect, citing higher domestic availability and easing prices.

The decision reverses restrictions imposed in May 2025 to curb hoarding and contain inflationary pressures, and signals greater confidence in the country’s wheat supply position as stocks now exceed last year’s levels.

Under the revised policy, market participants are no longer subject to quantitative caps on wheat holdings.

However, authorities have retained mandatory weekly reporting of stock positions by all entities to ensure continued transparency and regulatory oversight.

Officials said the reporting requirement would allow the government to monitor market behaviour while avoiding distortions caused by rigid limits.

The move comes alongside a gradual easing of export-related controls. In January, the government approved exports of 500,000 metric tons of wheat flour and related products, marking a cautious step toward re-engaging with international markets.

India has maintained restrictions on wheat exports since 2022 following heat-related crop losses and domestic price volatility. Recent policy adjustments are intended to support smoother market functioning while responding selectively to global demand.

Punjab’s grain storage crisis ahead of wheat season

While national wheat supplies appear robust, Punjab is confronting a pressing storage shortfall as its grain facilities near full capacity in anticipation of the upcoming wheat procurement period.

The state’s total storage infrastructure, encompassing godowns, cover and plinth structures, and silos, amounts to approximately 180 lakh metric tonnes (18 million metric tonnes), much of which remains occupied by stocks from previous seasons, including those from 2023-24.

This congestion has already impacted rice milling operations, with over 5,000 mills completing only 25% of custom milling by early February, well short of the March 31 deadline for deliveries to the Food Corporation of India (FCI).

From last season’s procurement of 156 lakh tonnes (15.6MT) of paddy, which produced 105 lakh tonnes of rice, approximately 67% has been delivered to the FCI.

However, millers are hesitant to proceed further without additional storage space, exacerbating delays.

The primary cause of this bottleneck is the slow interstate evacuation of grains, prompting Punjab’s food and civil supplies department to seek urgent central government assistance.

FCI officials have noted that efficient annual grain movement is essential to resolve these issues, but ongoing delays are creating ripple effects on milling and future procurement.

Prem Goel, president of the Akhil Bharatiya Rice Sheller Sangh, has warned that without swift intervention from both central and state authorities, the situation could deteriorate significantly by March-April.

Punjab expects to procure around 130 lakh tonnes (13MT) of wheat starting mid-April, adding to an annual foodgrain total of 240-250 lakh tonnes (24MT-25MT)

Compounding factors include potential yield reductions due to rising temperatures, underscoring the need for enhanced storage and logistical strategies in this key agricultural region.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.

Newer Post

Thumbnail for India lifts wheat stock limits on rising supplies

Eshbal closes Dare to Be Different Foods acquisition deal

Older Post

Thumbnail for India lifts wheat stock limits on rising supplies

Zambia confirms US$593M paid to maize farmers, anticipates bumper 2025/2026 harvest