Centre closely monitoring food prices amid India-Pakistan tensions

Amid border tensions with Pakistan, the government is keeping a close watch on prices of essential commodities and may hold regular deliberations with supply chain stakeholders to ensure that no hoarding takes place.

 

The government won’t hesitate to invoke the provisions of Essential Commodities Act, 1955 to check speculative activities, hoarding and black marketing, a senior official said.

 

The Act empowers the government to regulate the production, supply and distribution of commodities it declares ‘essential ‘in order to make them available to consumers at fair prices.

 

“We have directed the required officials to keep a watch on prices. We may also start meetings with stakeholders like stockists, importers, wholesalers, and retailers to ensure they do not indulge in hoarding of supplies," the official said.

 

District Collectors and Superintendents of Police will come forward to convey this message to people across regions. 

 

The government has also urged people to not panic and indulge in hoarding or stockpiling of essential items, including kitchen supplies.

 

"Our granaries are full and there is no shortage. Commodity prices are stable and we have a prediction of good rains, which will ensure a steady and good supply,” the official said.

 

According to latest data from the food ministry, India has around 66.17 million tonnes of food grains (both wheat and rice) in its warehouses, as on April 27. This is more than the total food grains sold through the public distribution system in 2023-24, which is around 52 million tonnes. Thus, India has more than a year’s stock of wheat and rice in hand.

 

Food prices have been fairly stable in April due to steady supplies. Data shows that prices of major vegetables, fruits and cereals have remained steady barring a few such as tomatoes and brinjal. Among cereals, data sourced from the Department of Consumer Affairs show prices of both wheat and wheat flour have declined in April due to bumper harvest.

 

The CPI-based inflation rate dropped to 3.34 per cent in March 2025, which was the lowest level since August 2019.