The purpose and significance of imposing stock limits on wheat by the government can be understood through the following points: 1. Ensuring food security: Imposing stock limits on wheat helps to maintain adequate wheat supply in the market, thereby ensuring food security for the population. 2. Price stabilization: Stock limits prevent hoarding and control excessive price fluctuations in the market. This allows the government to stabilize wheat prices, making it more affordable for consumers. 3. Market competition: By imposing stock limits, the government encourages fair competition among traders and prevents monopolistic practices that could negatively impact pricing and availability. 4. Buffer stocks: Limiting the stocks held by individual entities helps to create and maintain strategic reserve stocks, which can be utilized during unforeseen circumstances like natural disasters, crop failures, or emergencies. 5. Avoidance of wastage: Stock limits discourage over-accumulation of wheat, reducing the chances of wastage due to spoilage or deterioration. In summary, the imposition of stock limits on wheat serves the purpose of ensuring food security, stabilizing prices, promoting fair competition, maintaining buffer stocks, and minimizing wastage.