Traders, retailers and food processors must declare wheat stocks every Friday from April to prevent hoarding and price spikes, the government said on Friday.

The second biggest global wheat consumer after China has been trying to contain wheat prices after heat waves hit production for two straight years, forcing the government to sell record volumes to boost domestic supplies.

India imposed a limit on wheat stock traders could hold to moderate prices. However, the limit is set to expire on March 31.

The measure is aimed to “manage overall food security and prevent hoarding and unscrupulous speculation,” the Centre added in a statement.

The government is keen to replenish stocks by increasing procurement this year and to do this effectively, they must monitor private buying, said a trader seeking anonymity. “If needed, the government can again impose the stock limit to facilitate procurement,” the trader added. 

Stock in government warehouses dropped to 9.7 million metric tons by February end, the lowest since 2017.

In 2023, the government bought 26.2 million tons of wheat from local farmers, compared with its target of 34.15 million tons.