By imposing stock holding limits, the government will be able to prevent traders from holding excess stocks. Earlier, the government had lifted the restrictions on holding limits in response to surplus production, reported the Economic Times.
Currently, the government is not worried about prices of food grains and sugar due to the surplus production, but is concerned about pulses production, which may decline this year due to poor monsoon.
Monsoon, which plays an important role in Indian agriculture, is down by 21% in the country this year.