Overview
Under the Essential Commodities Act, the government can impose stock limits on traders, millers and retailers for items such as pulses, wheat and edible oils when prices rise.
How It Works in Practice
Stock limits cap how much of a commodity wholesalers, retailers, big chain retailers and processors may hold at a time. They have been used for pulses such as tur and chana, for wheat and for edible oils and oilseeds.
Rules and Support
Traders declare stocks on government portals while limits apply.
What It Means for Farmers and Traders
Traders must declare stocks on government portals while limits apply. Limits are usually time-bound and are removed when prices ease.
Companies, Bodies and Schemes
Related: All inputs, services and schemes · All crops
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