Role of Wheat in the Food Security

Recently, the Union Government has imposed limitations on the wheat stock to oversee ” food security, discourage hoarding, and engage in ethical speculation. By regulating supply, the goal is to stabilize the price of the essential commodity. Stock limits are mentioned below-

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Stock limits will be applicable to each entity individually such as Traders/Wholesaler- 3000 MT;

Retailer- 10 MT for each of the Retail outlets;

Big Chain Retailer- 10 MT for each outlet and 3000 MT at all their depots and

Processors- 75% of annual installed capacity.

To manage wheat retail prices, the Central Government has also planned to sell off 15 LMT of wheat in the first phase under the Open Market Selling Scheme (Domestic) (OMSS (D)) 2023 to flour mills, private merchants, bulk buyers, and makers of wheat products. Wheat will be sold in 10-100 MT lots.

Concerns & Issues

The actions are being taken against a backdrop of growing worries that the unseasonal rains and hailstorms at the end of March and the beginning of April, together with warmer temperatures in February, may negatively affect wheat production overall.

Crop prices increase as production declines. As a result, local prices may rise above government purchase prices, complicating the government’s efforts to stockpile supply.

A reduction in yield is caused by high temperatures during the flowering and maturation periods which is seen in end of March.

Potential Effects of El Nino

The government’s ongoing measures to stabilize the pricing of basic commodities include the enforcement of stock restrictions on wheat as well as the dumping of wheat and rice under OMSS. To keep prices in check and maintain simple access throughout the nation, the Department of Food and Public Distribution is closely monitoring the stock position of wheat and rice.