In a significant policy reversal, the Indian government has officially abolished all restrictions on wheat stockpiling for traders, wholesalers, and retailers. The decision, announced Thursday, comes as domestic supplies reach comfortable levels and market prices show sustained moderation.
The world’s second-largest wheat producer had initially implemented these stockholding limits in May 2025 as an emergency measure to combat hoarding practices and suppress escalating food inflation. The restrictions were part of a broader strategy to ensure adequate domestic availability and stabilize market conditions during periods of supply constraint.
Official statements from New Delhi indicate current wheat inventories have surpassed last year’s levels, signaling robust supply conditions that rendered the previous constraints unnecessary. Despite the removal of quantity limits, market participants will continue to submit weekly stock position declarations, maintaining transparency in supply chain monitoring.
This policy shift follows last month’s authorization of 500,000 metric tons of wheat flour and related product exports, marking a gradual easing of export controls originally instituted in 2022. The sequential relaxation of trade restrictions reflects India’s improving agricultural output and stabilizing food security situation, potentially positioning the nation for increased participation in global grain markets.