Anticipating curbs, food companies, dealers stock up on essential goods: Report

In a bid to mitigate any possible supply disruptions for essential goods, such as cooking oil, rice and pulses in the event of restrictions due to the Covid-19 pandemic, food companies and dealers are creating a buffer stock of these items.

While companies are not expecting the pandemic to become as severe as the first two waves, or that states or the Centre will impose restrictions, they are choosing to err on the side of caution, a report in The Economic Times said.

Adani Wilmar, the company that sells the Fortune brand of edible oils, is keeping an inventory for 12 days at its warehouses, as compared with its usual inventory of 10 days, managing director Angshu Mallick told the publication.

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"This is being done to ensure smooth supply to our dealers, distributors and consumers in case some restrictions are put in place by state governments. Also, the wedding season starts on January 15. Therefore, there will be additional demand," he said.

"The offtake from dealers and distributors has gone up by 20% to 25%. They are also getting themselves ready in case of any exigency," Kohinoor Foods JMD Gurnam Arora told the publication.

However, trade insiders have said that they don't expect the price of pulses to rise as fresh supplies are set to enter the market soon.

"There will be ample supply of pulses in the market and we do not see a rise in prices," Bimal Kothari, vice-chairman of the Indian Pulses and Grains Association said. "Also, the government has extended the deadline for free imports of moong, tur and urad till March 31, 2022."

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