Govt further cuts wheat stock limits, bans onion exports until March 2024

Through an order Friday, the Ministry of Consumer Affairs, Food and Public Distribution halved the wheat stock limit to 1,000 metric tonnes (MT) for traders and wholesalers, and to 5 MT for retailers. For big chain retailers, the wheat stock limit was halved to 5 MT at each outlet and to 1,000 MT at all depots.

After banning wheat exports last year, the Centre on June 13 fixed the wheat stock limit at 3,000 MT for traders and big chain retailers. On September 14, it was further reduced to 2,000 MT.

As of November 1, the wheat stock in the central pool stood at 218.76 lakh metric tonnes (LMT), a little higher than 210.46 LMT on the same day last year.

“In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government of India imposed stock limits on wheat… As part of continued efforts to moderate prices of wheat, the Central Government has decided to revise the Wheat Stock limit,” the Ministry’s statement said.

The Ministry, however, said that to boost availability in the open market the weekly quantity of wheat being offered through e-auction by FCI will be increased from 3 LMT to 4 LMT with immediate effect.

Meanwhile, in a notification, which was issued Thursday and came into effect Friday, the Director General of Foreign Trade (DGFT) amended the export policy of onion from ‘free’ to ‘prohibited’ until March next year, allowing it only in certain conditions.

The move came as onion prices continued to be higher than last year’s — on Friday, the all-India daily average price was Rs 58.82/ kg, 96.75% higher compared with Rs 28.88/ kg a year ago.

Earlier, to discourage exports and maintain availability in domestic markets, the Government had imposed a Minimum Export Price (MEP) of USD 800/ tonne on onion from October 29-December 31. It followed the imposition of a 40% duty on onion exports.

The exception to the ban on onion imports includes permission by the Government based on countries’ requests.

Also, the DGFT said, onion exports will be allowed if the loading commenced before the notification was issued. Further, if the shipping bill is filed and vessels have already anchored in Indian ports for loading, such shipments will also be allowed. Or, if “consignments of onions have been handed over to the Customs before this notification and are registered in their system….”, the DGFT further said.

The period of such exports shall be up to January 5, it added.