The 21-day lockdown announced on the evening of March 24 caught many of us—this writer included--unprepared (read “understocked“). To add to my misery, friends and relatives people on whatsapp groups bragged about how they have smartly stocked up for 3-6 months, ever since the quarantines began.

Share Market Live

NSE

Immediately after the 8 PM announcement I rushed to get supplies, only to find serpentine but disciplined lines everywhere..people wearing masks with cloth bags and cash in hand, only to be disappointed as stocks ran out quickly.

Since the Janta Curfew on March 22, important mandies in many states have been shut. And are expected to remain shut till March 31. Even before the nationwide lockdown, raw material and stocks with dal millers had started falling. There is trouble along the entire supply and distribution chain. Farm produce is not reaching the mills as there is problem of labor. Millers in Delhi say that the deliveries from the warehouse are being stopped by the authorities. This has led to retail prices of pulses like chana, moong, tur rising 3-4 percent.

I also spoke to some sugar and edible oil companies and they too had a similar story to tell. The companies, as per government directive, are ramping up production of essential goods, but distribution logistics is turning out to be a nightmare.

The All India Dal Mills Association has sought clarity on the functioning of mills and the logistics of getting them to retailers. These mills process pulses to make them edible.

Government agency Nafed (National Agricultural Cooperative Marketing Federation) has been selling pulses to states under welfare schemes. While Nafed has assured that this will continue, market participants are skeptical as both transport and labour are a problem. The transporters are putting fewer trucks on road as the checks at borders by the authorities are leading to longer transit time.

Nafed in the meantime has suspended procurement of pulses and oilseeds owing to the lockdown. The procurement is expected to resume only after the lockdown ends.

Chana accounts for 68 percent share in the pulses basket, and Nafed has 1.5 million tons of it. Out of this 1 million tons is reserved for supply to states. Nafed also has other pulses and 1.4 million tons of buffer stock.

The Rabi crop is good too..but will it reach the consumers in time, in a hassle free manner? How soon can online retail stores be up and running for essential goods deliveries ? Are there chances of the lockdown extending ?....These are some of the questions buzzing on my WhatsApp group .

First Published:Mar 26, 2020 9:32 AM IST