The Indian government recently announced the imposition of stock limits on wheat under The Essential Commodities (Amendment) Act 2020. The following are the reasons behind this move:

• To control the domestic prices of wheat
• To maintain adequate availability of wheat in the country
• To prevent hoarding and black marketing by traders and stockists
• To ensure timely distribution to consumers, especially during times of shortage or crisis
• To promote fair trade practices and equitable distribution of resources

The government believes that these measures will safeguard the interests of both farmers and consumers. Stock limits will prevent farmers from being exploited by middlemen, while consumers will not be subjected to sudden price spikes due to artificial scarcity created by hoarders. The move is also seen as a step towards ensuring food security in the country.