Wheat Prices May See Temporary Dip After Stock Limit Order Despite Record Procurement

Despite record wheat production and robust government procurement, the central government has imposed stockholding limits to ensure adequate availability in the market. According to the latest order, traders can hold up to 3,000 tonnes, retailers up to 10 tonnes, large chain retailers up to 10 tonnes per outlet, and processors up to 70% of their installed capacity. While the announcement sparked some market activity, the immediate impact on wheat prices has been limited. In Delhi’s Lawrence Road market, wheat closed steady at ₹2,750 per quintal yesterday evening. Some regions reported a marginal decline of ₹5–₹10 per quintal. Overall, major mandis (wholesale markets) showed a slightly weak to stable trend, with buyers remaining cautious and sellers showing increased activity. According to a Kolkata-based trader, wheat prices dropped by about ₹25 per quintal following the implementation of the stock limit. However, wholesale sellers are reluctant to offload stock at this level, as the newly set limits are relatively higher than previous restrictions. Many traders had already stocked 1,500–2,000 tonnes, which has helped prevent panic selling. The government has allowed only a 15-day window to offload excess stock, which could lead to short-term market anxiety. As a result, some key markets may see prices dip by up to ₹50 per quintal. However, this decline is expected to be temporary, with market stability likely to return within 10–15 days. Experts advise traders to exercise discretion in their selling strategies.

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