Needless intervention

Enforcement of stock limits on wheat is puzzling

The imposition of stock limits on wheat, even while claiming abundant supplies, seems to be a clear indication of misadministration in the country’s food economy. The fact that the rabi marketing season is not yet over, and the farmers still have unsold stocks with them, makes this move unwelcome, as also anti-farmer. Moreover, the decision has come at a time when food inflation has cooled down to an 18-month low of 2.91 per cent and the overall retail inflation has eased to a 25-month low of 4.25 per cent, largely on account of the softening of prices for food and fuel. Although, no doubt, the consumer price index-based inflation rate in wheat has remained relatively high over a long period, it does not warrant strangulating the whole market, especially considering that 810 million people are provided free grains by the government under various welfare schemes.