Govt may invoke ESMA to curb hoarding, ensure steady supplies post Operation Sindoor

Emergency controls could be rolled out if any signs of hoarding, price gouging or panic buying emerge, the official said.
Emergency controls could be rolled out if any signs of hoarding, price gouging or panic buying emerge, the official said.
Summary

Govt readies anti-profiteering measures post-Operation Sindoor, may invoke ESMA to maintain stable supplies, curb hoarding and ensure uninterrupted access to essential goods.

NEW DELHI : In the wake of India’s missile strikes on terror targets in Pakistan following the deadly Pahalgam attack, the government is preparing to invoke the Essential Services Maintenance Act (ESMA) to prevent profiteering and ensure steady supplies of essential commodities, two government officials told Mint.

ESMA empowers the government to prohibit strikes and ensure the uninterrupted delivery of essential services vital to public welfare. During the Covid-19 pandemic, it was invoked to prevent disruption in healthcare, transport, and supply chains.

India launched the precision strikes under 'Operation Sindoor' in the early hours of Wednesday, hitting four locations—Muridka and Bahawalpur in Pakistan’s Punjab, and Kotli and Muzaffarabad in Pakistan-occupied Kashmir. The defence ministry said the strikes were a calibrated response to the Pahalgam attack.

“The department of consumer affairs, in coordination with various authorities including state governments, will step up monitoring of supply chains to prevent disruptions and protect public interest," one of the officials said.

Emergency controls could be rolled out if any signs of hoarding, price gouging or panic buying emerge, the official added.

“We had implemented similar measures during the Covid-19 crisis, and the same mechanism will be reactivated if needed to control prices of essential items," the second official told Mint.

Also read: India resilient to economic fallout from escalating tensions with Pakistan

Buffer stocks intact

As per agricultural market intelligence platform IGrain India, a total of 661.72 lakh tonnes of food grains—comprising rice and wheat—were available in the central pool stock, as of 27 April. This figure includes both direct and indirect holdings, with 380.34 lakh tonnes of rice and 281.38 lakh tonnes of wheat.

In addition, 6.78 lakh tonnes of grains were in transit, including 4.39 lakh tonnes of rice and 2.39 lakh tonnes of wheat. While the bulk of these stocks are held by the Food Corporation of India (FCI), a significant portion is also maintained by state agencies under the decentralized procurement system.

Inflation under watch

According to consumer affairs ministry data, prices of key staples such as wheat ( 42.73/kg), rice ( 31.35/kg), and atta ( 36.98/kg) remained largely stable as of May 6 compared to a month earlier.

However, a marginal increase was noted in the prices of pulses—chana dal rose to 86.72/kg from 85.56/kg, tur dal to 127.67/kg from 127.44/kg, moong dal to 111.90/kg from 110.88/kg, and masoor dal to 88.18/kg from 86.78/kg.

Sugar prices edged up to 45.79/kg from 45.44/kg, while tea (loose) increased to 270.55/kg from 263.76/kg.

Most other items, including edible oil, potatoes, onions, and tomatoes, showed price stability. Eggs rose slightly to 75.1 per dozen from 74.74. Prices of cumin seed (100g) rose to 45 from 43.97, while banana rates inched up to 49.45/kg from 48.99/kg. The department currently tracks daily prices of 38 essential food items.

Also read: Operation Sindoor: Flight ops suspended in North India after strikes on Pakistan terror camps

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