MC EXCLUSIVE Centre asks states to monitor prices, ensure steady supply of essentials amid border tensions

The country currently has 1.6 to 1.7 million tonne of edible oil, which is sufficient for 28 days of consumption;

Amid the ongoing conflict between India and Pakistan, the Department of Consumer Affairs (DoCA) has written to the chief secretaries of all states to ensure that there is no hoarding or black marketing of essential commodities, a senior government official told Moneycontrol.

The letter sent to the states, says that the prices of pulses, wheat, rice, vegetable, edible and other 'essential commodities' should be monitored. The government may also invoke provisions of the Essential Commodities Act (ECA), 1995, if needed, said the official.

The ECA empowers the government to control the production, supply, distribution, and trade of certain commodities deemed essential to the public interest. This control mechanism aims to prevent price manipulation and ensure fair distribution of essential goods, especially during crises.

DoCA ( Department of Consumer Affairs) is also holding meetings with other stakeholders – wholesalers, retailers, exporters, etc. – to ensure an adequate supply of essential commodities. “In times of uncertainty, such as the ongoing conflict, the supply of essential items needs to be secured,” said the official.

“However, there is no need to worry as of now, as there is no shortage of essential grains,” the person added. According to official data, the stock of rice and wheat in Indian warehouses is over 66 million tonnes, higher than the quantity of food grains (52 million tonnes) sold via the public distribution system last year.

The country currently has 1.6 to 1.7 million tonne of edible oil, which is sufficient for 28 days of consumption; and has 5.4 million tonne of sugar stock, enough to sustain consumption for about 3 months.

A rice trader based in Delhi, on condition of anonymity, told Moneycontrol there is no official order so far controlling supply, but internally officials are monitoring prices of food grains.

Rahul Chauhan, Director, IGrain India said: “India has sufficient reserves of foodgrains, sugar, pulses, and edible oils. Even if a war like situation arises, there is no risk to food security.”

In March, inflation of cereals and products stood at 5.93%, and that of sugar at 3.89 percent. Inflation of oils & fats, however, was at 17.07%.