What is Stock Limit? How does it affect the Mandi Prices?

Stock Limits or Stock-Holding limits are the measures being adopted by the government. It is being done to restrict the ability of wholesalers to stock food products/grains. If you are checking for Madhya Pradesh mandi bhav, you would find the latest news that the government has imposed a stock limit on wheat till March 2024. The move has been made to control the rising prices of wheat within the region.

Stock Limit defines the maximum limit to which a wholesaler can keep a stock of grains in its warehouses. As the wholesalers/suppliers create artificial scarcity in the market by holding the stock. Such results in increased prices for the product/food grains and benefits for the suppliers. In case, the stock level exceeds the mentioned limit, then it is the stockist’s responsibility to bring down the level to the set limit within 30 days. Also, the stockist is required to regularly update their stock position on DFPD Portral (Department of Food and Public Distribution).

It is beneficial for both the farmers as well as the buyers in the marketplace. Due to the set stock limit, constant demand and supply for the product are ensured. Such demand and supply balance helps to control the price inflation The present inflation rate is expected to have a major impact on the Lok Sabha election in India. The recent farmer protest attracted the attention of society towards the price disparity that farmers experience in the marketplace.

Such disparity exists because stockist buys the produce at a lower rate, stocks them, and pushes the market price up. Hence, the major profit margin is enjoyed by the stockist in comparison to farmers. As of the Madhya Pradesh mandi bhav, last month the price for the essential grains was boosted by 8%. Hence, it was important to introduce measures to control the increasing mandi bhav.

Related posts:

There are many factors to consider when choosing a Sugar Land, Texas psychiatrist. These factors range from age and experience to cultural awareness and social pressures. For instance, a young Asian…

The Echo Buds with Active Noise Cancellation, released in 2021 as the 2nd generation, are wireless earbuds offered by Amazon. These earbuds provide an immersive listening experience along with a host…

A search for an app that enables users to download any new or old movies has arisen as a result of the fact that the majority of people in this day and age prefer to watch new movies on their…