Recently, the Stock limits for wheat have been reduced for traders, wholesalers, retailers, big chain retailers, and processors in all States and Union Territories.
- The revised stock limit is 2,000 Metric Tonnes (MT), down from the previous limit of 3,000 MT.
The move is a response to the artificial scarcity created by some individuals, leading to an increase in wheat prices.
Violators of stock limits may face punitive action under the Essential Commodities Act, 1955.

There is no specific definition of essential commodities in ECA 1955.
- Section 2(A) of the Actstates that an “essential commodity” means a commodity specified in the Schedule of the Act.
To prevent hoarding and black marketing of foodstuffs,the Essential Commodities Act was enacted in 1955.
It curbs inflationby allowing the Centre to enable control by state governments of trade in a wide variety of commodities.
Centre’s Role:
- The Act gives powers to the central government to add or remove a commodity in the Schedule.
- The Centre, if it is satisfied that it is necessary to do so in the public interest, can notify an item as essential, in consultation with state governments.
Impact:
- By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.

Government limits wheat stocks to control price rise and hoarding