Tamil Nadu sets stock limits for rice, paddy, pulses to check hoarding, price rise

The Tamil Nadu government on Friday imposed stock limits on paddy, rice, tur dal and urad dal under the Essential Commodities Act to ensure their equitable distribution and availability at fair prices, amid rising prices of essential food commodities and concerns over possible hoarding.

The orders, issued with the prior concurrence of the Centre, will remain in force for three months for tur and urad dal, while the restrictions on paddy and rice will continue until January 31, 2027.

The decision comes amid a sharp increase in the prices of rice and other essential commodities, drawing criticism from the Opposition against the TVK government.

Opposition leaders have alleged that the price of rice per kilogram has increased from Rs 67 to Rs 100, raising concerns over the growing burden on consumers.

Under the Tamil Nadu Paddy/Rice (Stock Limit) Control Order, 2026, wholesalers have been permitted to hold a maximum stock of 2,000 metric tonnes of paddy or rice. Retailers, meanwhile, can stock up to eight metric tonnes at each outlet.

Big chain retail shops can also hold up to eight metric tonnes at each outlet, subject to an overall ceiling calculated at eight metric tonnes multiplied by the total number of outlets.

For millers, the permissible stock has been capped at an amount equivalent to not more than one month's production capacity.

Rice processors, on the other hand, can hold stocks equivalent to 60 per cent of their monthly installed capacity multiplied by the number of months remaining until January 2027.

Similar restrictions have been introduced for tur dal and urad dal, with wholesalers allowed to hold up to 200 metric tonnes of each variety.

Retailers and big chain retail shops can stock up to five metric tonnes of each variety at every retail outlet. Big chain retailers can additionally hold up to 200 metric tonnes of each pulse at every depot.

For millers dealing in tur and urad dal, the permissible stock has been fixed at the production equivalent of the preceding three months or 25 per cent of their annual installed capacity, whichever is higher.

The orders also place restrictions on importers, who cannot retain imported stocks of rice or pulses for more than 45 days from the date of customs clearance.

According to the government directions, all entities covered by the restrictions, including wholesalers, retailers, millers, processors and importers, will have to declare their stock positions on the Department of Consumer Affairs portal and regularly update the details.

Entities currently holding stocks above the prescribed limits have been directed to bring their holdings within the stipulated ceilings by November 16, 2026.

The government is expected to monitor compliance through stock declarations and periodic updates, with the restrictions aimed at preventing hoarding, improving market availability and containing price pressures.

The measures will remain in force for their respective prescribed periods, during which traders and other stakeholders will be required to adhere to the specified stock limits.- Ends