• UGI USER
  • Jun 25, 2024
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GOVERNMENT IMPOSES WHEAT STOCK LIMITS TO CURB HOARDING

Why in the news?

  • Amid concerns about a potential wheat shortage, the Indian government has invoked the Essential Commodities Act.
  • The government aims to prevent hoarding by setting maximum stock limits under the Stock Limit Order, effective June 24 until March 31, 2025.

Key Restrictions Imposed:

  • Traders and wholesalers can hold up to 3,000 tonnes of wheat, aimed at preventing accumulation beyond necessary business requirements.
  • Big chain retailers are limited to 3,000 tonnes at their depots and 10 tonnes per retail outlet, ensuring equitable distribution and availability.
Source: Pib
The Essential Commodities Act 1955

  • Background: Enacted during a period of food scarcity and dependency on imports like PL-480 wheat from the US to feed the population.
  • Purpose: Aimed to prevent hoarding and black marketing of essential commodities like foodstuffs.
  • Definition: The Act defines “essential commodity” based on items listed in its Schedule.
  • Legal Authority: Empowers the central government to modify the Schedule by adding or removing commodities, declaring items essential in consultation with state governments, if deemed necessary for public welfare.