Supply chain stretched, retail stock starts thinning out

The stock of many essential items, including perishables, foodgrains, packaged items, pharmaceutical products, consumer durables and dairy products, is already thinning out across the city.

Ensuring that the supply chain is not disrupted is a major challenge, especially with an extension of the lockdown for 19 more days, according to various stakeholders.

Stranded migrant workers and homeless people queue to collect food during the lockdown, at Sushant Lok, DLF Phase 4, in Gurugram, India, on Tuesday, April 14, 2020. (Yogendra Kumar/HT PHOTO)

The stock of many essential items, including perishables, foodgrains, packaged items, pharmaceutical products, consumer durables and dairy products, is already thinning out across the city. Traders are apprehensive that continued strict curbs on movement may spark shortages in the short term.

On Tuesday, Prime Minister Narendra Modi announced that the lockdown will be extended till May 3, with enhanced restrictions for hot spots to contain the spread of coronavirus (Covid-19). The Centre will issue a set of guidelines for states to implement the extended lockdown on Wednesday.

Fresh curbs, put in place by the Delhi government to ensure social distancing at wholesale vegetable and fruit markets, are likely to hit the supply of green vegetables, especially those arriving in small and medium-sized vehicles, such as pickup trucks and tempos. The government imposed staggered timings for purchase of vegetables and fruits, token-based entry of only 2,000 vehicles and allowing only one supply vehicle per trader, be it a small or big truck.

Traders at Azadpur Mandi, which is Delhi’s biggest wholesale fruit and vegetable market, said that the situation, except for staples, such as potatoes, tomatoes and onions, is likely to worsen at retail markets in a couple of days.

“Nearly 60% of major green vegetables are not reaching the wholesale market. The shortage of bottle gourd, ridged gourd, brinjal, bitter gourd and okra at the mandi will start reflecting in retail markets soon. The revised rules are not allowing the adequate supply of these vegetables by farmers. It’s a failed system,” Anil Malhotra, a member of Agriculture Produce Market Committee (APMC), Azadpur, said.

He said that these vegetables and fruits, such as muskmelon and watermelon, are supplied in smaller vehicles from neighbouring states of Haryana, Rajasthan and Uttar Pradesh.

Usually, a wholesale trader receives vegetables from three to five vehicles per day. “Nearly 64 traders were challaned for violating the norm of one vehicle per trader. This is creating a gap in supply. For instance, if a trader normally used to get 15 tonnes of these vegetables per day, he will now get only three to four tons. It will eventually result in price rise at retail markets,” Malhotra said.

Rajendra Sharma, a wholesaler at Azadpur market, said, “Supply of vegetables coming in big vehicles such as trucks with 25-tonne capacity will not be impacted much but the supply of green vegetables will become a problem if the one-vehicle-per-trader rule is not changed. Nearly 50% of the green vegetables might become expensive in the days to come if the situation prevails,” he said.

Sharma said that farmers are not able to supply their produce to wholesalers due to the token system.

Haji Yamin, a trader at Okhla Mandi, has similar concerns. He said that instead of limiting the supply and the number of vehicles in the mandi, the government should ensure that people follow social distancing, use sanitisers and wear masks. “Normally, over 100 trucks and small vehicles of fruits and vegetables used to supply to the market, but this number has gone down by 30-40%,” Yasmin said.

However, Adil Ahmad Khan, chairman, APMC Azadpur, a Delhi government-appointed official, said that there were some hiccups, initially, in the implementation of the new system and that it would be streamlined soon.

“There are some concerns of the traders regarding the supply of green vegetables and entry passes. We have held a meeting with the traders and assured that arrangements will soon be made so that the supply of green and perishable vegetables is not affected. The validity of passes, which were issued to the wholesale traders of the mandi, has now been extended till May 3,” Khan said.

Transporters too said that they are working at just 15%-20% of their capacity. Pradeep Singhal, chairman, All India Transporters Welfare Association, said that many trucks are stranded at borders, while there are not enough loaders or drivers. “Most of the workforce has left the city. There are not enough people to drive vehicles. We are in talks with the government and have also requested them to provide social security for drivers so that they are encouraged to resume work,” said Singhal.

Besides, retailers and small-time grocery store owners said that they are running out of essential items due to delays and a lack of movement at the wholesalers and distributors’ end.

Sumit Dawar, a grocery store owner at Lajpat Nagar market, has been using making trips in his vehicle to procure stock from wholesalers. “Initially, the supply would reach every three days, which gradually started extending to almost a week. People would stock up the moment fresh supply arrived. Besides, many distributors of flour brands, packaged items and toiletries have not been supplying stock. To deal with this, I decided to get permission from the local authorities to use my car for getting some stock, but even then, only a limited stock can be ferried in a car,” said Dawar.

In nearby Defence Colony market too, the scenario is similar. “We are running short of a number of packaged items that customers ask for, including milk powder, curd, dry snacks, beverages and toiletries. Most of the distributors have stopped sending supplies for the last 15-20 days. The old stock is fast running out,” said Rajinder Malik, who owns a general store and is also the president of the local market association.

At central Delhi’s Gole Market, some stores have run out of cooking oil, ghee, rice flour and condiments. In southwest Delhi’s Dwarka, retailers said that they do have enough pulses and legumes in stock, and are running out of spices, frozen foods and sanitary items. “Many customers ask for items of specific brands of cumin, methi seeds and other items, such as hand wash, toothpaste and soap, fresh stock of which is yet to come,” said Ajay Bansal, who owns a departmental store.

The list of essential items drawn up by the government includes milk, fruit, vegetables, medicines, food grains, spices, cooking oils and sanitary items, among others.

Wholesale dealers and distributors supply stock from their godowns to retailers across the city. The supply chain relies on several interconnected elements — workforce, transport and availability of containers for packaging, among others. If a single element is disrupted, the entire chain is thrown into disarray.

Besides, with only a limited number of people being issued curfew passes, only one or two persons from each shop or warehouse have the permission to commute.

Naresh Gupta, the president of Delhi Grain Merchants Association said, “We are able to send out stock only once or twice a week. With limited resources at hand, it is becoming difficult for dealers to transport goods on time.”

Vijay Jain, president, All India Traders Association, is hopeful that the new set of guidelines will ease restrictions on interstate transportation. “Though there are some hiccups in the movement of goods, we will ensure that goods reach retailers. We are also hoping that the fresh guidelines make it easier for supplying stock across borders,” said Jain.