Removal of Licensing Requirements, Stock Limits & Movement Restrictions on Specified Foodstuffs Order, 2016

Removal of Licensing Requirements, Stock Limits & Movement Restrictions on Specified Foodstuffs Order, 2016

Background
The Essential Commodities Act, 1955 was enacted to ensure the availability of essential commodities to the general public and to prevent hoarding, black marketing, and profiteering. To strengthen food security, the Government has issued several control measures under this Act from time to time. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025 was introduced specifically to regulate the stocking of wheat, a vital food grain, in order to curb artificial scarcity and price rise.

 

Applicability
The restriction on hoarding of wheat stock applies to:

  • Traders/Wholesalers – limited to 3000 MT.
  • Retailers – limited to 10 MT per outlet.
  • Big Chain Retailers – limited to 10 MT per outlet, subject to a maximum of 10 × total outlets (including depots).
  • Processors – limited to 70% of their Monthly Installed Capacity (MIC) multiplied by the remaining months of the financial year 2025–26.

These provisions apply uniformly across all entities engaged in trading, retailing, or processing of wheat in India.

Compliance requirement under the Order

  • Restriction on Hoarding of Wheat Stock (Essential Commodities Act, 1955; Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025)

As per Amendment Order in 2025, the hoarding of wheat stock are restricted as:

    1. Traders/Wholesalers – 3000 MT;
    2. Retailers – 10 MT per outlet;
    3. Big Chain Retailers – 10 MT each retail outlet subject to maximum quantity of (10 multiplied by total no. of outlets) MT. This will be the maximum stock that can be held at all their retail outlets and depots put together.
    4. Processors – 70% of Monthly Installed Capacity (MIC) multiplied by remaining months of FY 2025-26.
  • Stock to be Declared on Wheat Stock Portal (Essential Commodities Act, 1955)

As per Amendment Order in 2025, all wheat stocking entities must update their stock every Friday on https://evegoils.nic.in/wsp/login. The portal will later migrate to https://foodstock.dfpd.gov.in.

  • Registration on Wheat Stock Portal (Essential Commodities Act, 1955)

For all legal entities, one-time registration is required. Entity types are Trader/Wholesaler, Retailer, Big Chain Retailer and Processor.

Any entity which is found to have not registered on the portal or violates the stock limits will be subject to suitable punitive action under Section 6 & 7 of Essential Commodities Act, 1955.

  • Timeline for Compliance with Wheat Stock Limits (Essential Commodities Act, 1955)

As per Amendment Order in 2025, in case the stocks held by wheat stocking entities are higher than the prescribed limit in the order, they shall have to bring the same to the prescribed stock limits within 15 days of issue of the notification.

Penalties & Punishment

If any person contravenes any order made under Section 3-

In the case of any other order, with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:

If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2) is again convicted of an offence under the same provision, he shall be punishable with imprisonment for the second and for every subsequent offence for a term which shall not be less than six months but which may extend to seven years and shall also be liable to fine:

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