Escalating India-Pakistan tensions trigger stockpiling in border regions

Taking to social media platform X he also directed traders and businesses dealing with essential commodities to cooperate with law enforcement and warned that hoarding or stockpiling will be prosecuted under the Essential Commodities Act.

The minister's warning came as escalating tensions between India and Pakistan prompted residents in border towns in Jammu, Rajasthan and Punjab rushing to buy essential goods like wheat, flour, rice and packaged foods.

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Demand surged in both stores and on online platforms. 

Packaged food companies reported this surge in demand from northern border cities and assured adequate supply.

Packaged food companies said demand has increased from border cities in north India. Companies assured supplies of adequate stock in such markets.  

“Border areas are seeing greater demand with consumers panic- buying. We are prepared with our supply chain and are ensuring quick supplies. Delhi is not impacted yet. We are seeing panic buying in large stores and quick-commerce in these markets. We have an efficient supply chain, (we did) even during covid, so we won’t be out of stock at all," said Ashwani Arora, managing director and chief executive officer (CEO), LT Foods, which sells basmati rice.

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To be sure, some grocery stores in Delhi reported increased demand for pulses and flour—as despite the capital remaining largely insulated from the conflict impact, a sense of panic prompted some households to stock up. 

For example, in south Delhi’s Lajpat Nagar, shelves for tea, soaps, coffee, pulses and biscuits were bare at a large department store on Friday afternoon. “We've seen a lot of bulk buying in the past three days," noted an employee at the Bhagat Ram Om Prakash store.

With the fighting continuing till the early hours of Friday morning, the national capital has been placed on high alert.

Angelo George, CEO, Bisleri International, said the maker of packaged water is fully operational across India, including in regions facing disturbances. “We have implemented all necessary precautions to ensure the safety of our staff and associates, in line with government advisories. We are also closely monitoring demand trends—there has been a noticeable increase in northern markets and we are taking all measures to ensure uninterrupted supplies," he said.

Others also reported more last-minute purchases. Biscuit-maker Parle Products reported an uptick for its brands across small stores in border areas.

“We are seeing some increased buying in border markets, especially in Rajasthan and Punjab. Over the last 10 days we have already ensured that we have sufficient stock in those markets. Typically, in a situation like this people tend to stock up on food items, having experienced this earlier we have already ensured that we have a high amount of stock moved to these distribution centres," said Mayank Shah, senior category head, Parle Products Pvt. Ltd.

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“We are ensuring the stock is adequately available. There shouldn't be any panic. I think the government has taken good measures and honestly, I am very proud of our army," he added.

Meanwhile, distributors of fast-moving consumer products said the market has sufficient stock for two months. “There is no need to panic. Yes, we have seen an uptick in demand for medicines and some essentials via general trade or kirana stores but it is not pan-India," said Dhairyashil Patil, president, All India Consumer Products Distributors’ Federation.