Centre has surplus stocks of rice and wheat to control inflation: Govt

The Indian government has more rice and wheat than needed for welfare schemes. These extra stocks are sold to control prices and inflation. Bharat Atta and Bharat Rice are also sold at lower rates. Stock limits are imposed to prevent hoarding

New Delhi: The Centre currently has surplus stocks of rice and wheat which exceed the buffer norm requirement for the public distribution system and social welfare schemes of the poor, the Parliament was informed on Tuesday.

The Centre’s total stocks of rice and wheat at 736.61 lakh metric tonnes (MT) are well above the buffer stock requirement of 411.2 lakh MT for the two cereals as of July 1 this year, Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya told the Rajya Sabha in a written reply.

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The rice stocks are 377.83 lakh MT compared to the buffer norm requirement of 135.40 lakh MT, while wheat stocks at 358.78 lakh MT exceed the buffer stock need of 275.80 lakh MT, the minister said in a written reply to a question in the Rajya Sabha.

She explained that these surplus stocks are released when prices start rising in order to increase the supply of foodgrains in the market to control inflation.

“To moderate the market prices and enhance the availability of foodgrains, the Union Government sells surplus wheat and rice, beyond the requirement of the public distribution system (PDS) and other welfare schemes (OWS) for the poor, through open sale under the Open Market Sales Scheme. This helps increase the availability of foodgrains in the market, control inflation, ensure food security and make foodgrains more affordable for the general population,” she said.

In addition, Bharat Atta and Bharat Rice were launched on November 6, 2023 and February 6, 2024, respectively, to provide atta (wheat flour) and rice to general consumers at subsidised rates under the open market sales policy, the minister said.

Further, in order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Union government has imposed stock limits on Wheat applicable to traders/wholesalers, retailers, big chain retailers and processors in all states and Union Territories, she added.