GOVT MULLS CAMPAIGN TO HALT PANIC BUYING

Such is the scare of the new coronavirus that protective gear such as masks and sanitisers are briskly going out of stock from retail outlets.

The government is contemplating launching a consumer awareness campaign, telling people not to panic while buying these items.

Meanwhile, manufacturers, especially micro, small and medium enterprises (MSME’S) are seeing a shortterm opportunity in this and are lining up to make these products.

Sample this: The Gujarat Food and Drug Control Administration (FDCA) has approved 100 product licences for hand sanitisers in the last one week alone. Speaking to Business Standard, HG Koshia, commissioner of Gujarat FDCA, said the government has approved product licences on a fast-track basis to ensure that there was no shortage of these items in the market.

“We gave 100 licences to around 40 manufacturers to make hand sanitisers in the last one week alone,” he said.

Sanitisers are a ~300-350crore industry in India, and in the last one month, the demand has jumped 10-fold, claimed industry sources. Manufacturers are registered with state FDAS and there is no centralised database in this regard.

Prices of masks (especially N95) and santisers as well as gloves have shot up significantly in the past few weeks. Masks, for example, are selling for ~40-50 a piece, up from ~10 a piece. Similarly, for N95 masks, which are considered to be more effective against viruses, the prices have shot up from ~150 per mask to ~500.

The health ministry has placed orders for eight million masks and other protective gear for healthcare workers.

Sensing this supplydemand disruption, the government last week invoked the Essential Commodities Act, 1955 to declare these items as essential commodities till June 30.