After the Central Government reduced the stockholding limits for wheat on August 26, a slight softening in wholesale wheat prices has been observed across major markets in the country. The revised stock limits apply to wholesalers, stockists, retailers, large retail chains, and processors. However, market experts suggest that the recent dip in prices is more a result of routine market fluctuations rather than a direct impact of the new stock limits. Price Movement Delhi: Prices dropped by ₹23 to reach ₹2,825 per quintal during the week of August 23-27. Indore: Saw a sharp decline of ₹200, settling between ₹2,500-3,000 per quintal. Itarsi: Prices fell by ₹40, down to ₹2,580-2,610 per quintal. Ujjain: Bucked the trend, with prices rising ₹50 to reach ₹2,625-3,100 per quintal. Kota & Bundi (Rajasthan): Recorded a decline of ₹37 and ₹20 respectively, reaching ₹2,613 and ₹2,550- 2,580 per quintal. Situation in Uttar Pradesh In Uttar Pradesh, wheat prices dipped by up to ₹40 per quintal. Interestingly, traders believe this moderate drop is part of regular market behavior, as wheat prices typically fluctuate by ₹25�50 per quintal. Earlier, many farmers were holding on to their stock, hoping for better prices. However, with the new stock limit rules and the possibility of government intervention, expectations of a price surge are now diminishing. Supply Conditions Delhi: Daily arrival of wheat is around 6,000-6,500 bags. Madhya Pradesh: Supply remains irregular across markets. Uttar Pradesh: Supply is relatively stable, though many farmers are still holding back stock cautiously. What Lies Ahead The government may soon begin wheat auctions under the Open Market Sale Scheme (OMSS) from the central pool, which could increase supply and exert additional pressure on prices. Conclusion: The current softening in wheat prices is mild and appears to be part of normal market dynamics. The full impact of the government's stock limit policy will become clearer once further measures, such as OMSS auctions, are implemented.