Essential goods market gets relief from state govts, police
Assurance of support and required facilities by state authorities to essential commodities markets and distribution channels has come as a reprieve. While labour shortage remains a challenge, traders are coping by convincing local labourers.
The slump in demand for commodities — following the closure of hotels, restaurants and roadside eateries — has reduced the burden somewhat. However, farmers are eager to sell their produce, during the harvest season.
Madhya Pradesh ( MP) and Rajasthan have taken measures to smoothen rabi crop harvesting, while Azadpur mandi has returned to normalcy. “The situation is improving after passes issued to small trucks from neighbouring states,” said Rajendra Sharma, president of Onion Merchants Association in Azadpur Mandi.
MP has allowed movement of combine harvesters, tractors and threshers with maximum three on board, so that farmers can harvest their crop, but grain mandis aren’t being allowed to function. On Thursday, the state decided to keep services related to warehousing construction, rake movement, and godown construction, along with the labour required for the same, exempt from the lockdown under Essential Services Requirement.
Rajasthan has issued guidelines for farmers on how to undertake harvesting of rabi crops while maintaining social distancing. Haryana has decided to postpone wheat procurement for 20 days but will incentivise farmers who bring their crop late. It has decided to give a bonus of ~50 per quintal, over and above the MSP of ~1,925 a quintal to those bringing wheat for sale from May 531, and ~125 a quintal from June 1-30.
Government sources said 1,600 wholesale mandis had started functioning smoothly and 300 more would operate from Friday.
In most areas, direct selling by farmers to retailers was on full swing, with mandis calling for lesser quantities of perishables. Imported oilseeds — which had arrived on ports but weren’t getting clearance due to closure — were cleared. Crushing units and refineries are operating with thinner capacities. The rest are in the process of organising essential passes for staff, workers, and even transporters. In Navi Mumbai, restrictions have been imposed on wholesale mandis to avoid gatherings, with staggered timings. However, most mandis dealing in essentials are open.
In Gujarat, however, there was a government flip-flop. Grain APMCS had been told on Wednesday to open markets. On Thursday, they said farmers and traders have agreed to resume after a few days. The change followed a representation by traders that they would prefer to remain shut, given the accounts closure. They will resume on April 2.
While the government has assured of the availability of vegetables, grains, and pulses, essentials like edible oils have been impacted.
“Only 10 per cent of groundnut crushing units are operational due to the lockdown. Transport of raw material for other edible oils, such as cottonseed and palmolein oil, has been affected because trucks are not being allowed to ply. Moreover, workers are afraid and not coming to work. Even ports have been closed, though raw materials are lying at warehouses,” said Sameer Shah, president of the Saurashtra Oil Mills Association (SOMA).
In UP, which produces 40 per cent of the country’s sugar, the government instructed district administrative and police to ensure seamless conduct of operations. “So far, there has not been any major hurdle being faced by UP mills, although the situation cannot be termed as normal. The state sugarcane department has sought reports from the mills regarding any difficulties in transporting raw or finished goods,” UP Sugar Mills Association (UPSMA) secretary Deepak Guptara told Business Standard. S B Sharma, director of UP horticulture and food processing, has asked district officials to ensure storage of horticultural crops, including potatoes, in cold storages.
Kandla and Mundra ports in Gujarat have resumed functioning for handling essential commodities. Ships coming from Argentina and Brazil take longer and hence their 14-day quarantine concludes during high seas. Ships from nearby nations may take a few more days before their consignments are unloaded.
Adani on low capacity
Organised edible oils players such as Adani Wilmar, too, have been impacted with inventory reducing to eight days from the usual 15 days. “Daily production is less than sales. Since we don't have enough stock, we are maintaining lower stock keeping units of 1-litre packs. This way, we will cater to more people,” Angshu Mallick, deputy chief executive officer of Adani Wilmar, said.
Lasalgaon onion mandi closed
Onion auction in Lasalgaon mandi has been halted. A senior functionary said traders usually keep the mandi closed in March-end and this will now be opened in the first week of April. Farmers have been advised to sell their produce in nearby mandis.
Sources said closure for a long time would jeopardise market equations, as prices could rise.
Deputy commissioners given ~1 crore each
for providing free food, medicine, and shelter to the needy
Distributing 1 mn of dry rations to daily wagers and unorganised labourers across the state door to door
for 2.1 million construction labourers
loan waiver under Badavara Bandhu scheme for street vendors and small traders
Payment of two-month social security pension in advance
cash handout to 3.53 mn daily earners; cost to exchequer at ~353 crore
to get free foodgrain under MGNREGA and Antyodaya
Facilitating community kitchens and food packets for the poor
Free foodgrain
for 78.5 million
for every family and 12 kg of rice per person free of cost
Wages for contract workers engaged in government work during lockdown
■ as relief for all ration card holders
Free rice, dal, sugar, and cooking oil for April
■ special relief, along with 15 kg rice, 1 kg of dal & 1 litre cooking oil
15 kg of rice, 1 kg of dal and 1 litre cooking oil for migrant construction workers in unorganised sectors
6 mn daily-wage earning
ration card holders to get 3.5 kg wheat, 1.5 kg rice, 1 kg sugar, 1 kg pulses and 1 kg salt free
milk pouches daily
Coronavirus-related hospitalisation and treatment free of cost for BPL families
■ additional relief for registered street vendors
Dry ration to students of Class I to VIII for 3 months being given by schools and mass education department