No signs of food inflation amid Indo-Pak tensions, Govt cautious on economic outlook: FinMin official

Despite the ongoing Indo-Pak tensions, there are currently no visible signs of food inflation in India, a Finance Ministry official said on Friday. He added that government officials have been closely monitoring the situation to ensure that market conditions remain stable, they added. This is crucial as concerns over geopolitical risks could impact domestic price levels, especially in essential commodities.

The official said the Ministry of Finance is on high alert, keeping a watchful eye on how the escalating conflict may affect various sectors, including supply chains and overall economic performance. The Finance Minister is particularly concerned about the risks of escalating tensions, which could potentially disrupt economic stability, especially in regions close to the conflict zones.

According to sources at BT TV, the Centre has communicated to the public that there is an adequate supply of vegetables, pulses, and essential items in the country. Senior government officials have assured BT TV that they are closely overseeing and managing supplies to avoid any disturbances, particularly in urban areas.

As per reports, the Centre has taken proactive measures by launching consultations with State Food Secretaries and key stakeholders from Friday onwards. 

An interministerial panel met on Friday to assess the availability of goods, including fertilisers and cereals, as millions of farmers gear up to plant kharif or summer-sown crops crucial for food security in the world’s most populous nation.

This meeting followed a high-level discussion led by Prime Minister Narendra Modi, involving top bureaucrats from various departments to ensure stability in prices and stocks.

In the wake of India’s missile strikes on Pakistan in response to terror attacks in Pahalgam, the government has been communicating with major agricultural produce market committees to prevent any unjust price increases, according to a government official.

There are plans to invoke the Essential Services Maintenance Act (ESMA) if necessary to maintain supplies, as reported.

In certain northern regions, such as Jammu, Jaipur, and Srinagar, there have been instances of people stockpiling goods out of fear of shortages resulting from ongoing military actions.

The main goal is to align supply logistics, prevent hoarding, and address profiteering amidst increasing public unease. States will be strongly encouraged to combat misinformation, ensure that false rumors of food shortages do not incite panic purchases.

This update on food supplies is complemented by the affirmations from major public sector fuel retailers in the country, affirming the stability of fuel stocks and the normal functioning of supply chains.

Indian Oil Corporation has confirmed that there is an abundance of fuel stocks nationwide and supply operations are functioning without any disruptions. They emphasized on social media that there is no necessity for panic buying as fuel and LPG are easily accessible at all their outlets.

In a similar statement, Bharat Petroleum Corporation Limited (BPCL) reassured the public that there is no reason for alarm or hurried purchases, as all retail and LPG outlets are fully stocked and prepared to fulfill energy requirements.

“All BPCL fuel stations and LPG distributorships, across its nationwide network are operating smoothly and are fully equipped to meet the energy needs of consumers. There is no cause for concern or panic buying. Our supply chain operations remain robust and efficient, ensuring uninterrupted supplies. We urge all customers to remain calm. BPCL remains steadfast in its commitment to energy accessibility and reliability,” said the company in a statement.