Government securing raw materials, urges industry to limit passing cost burden on consumers

NEW DELHI: “You pocket all the profits when the going is good, but instantly pass on costs when things turn adverse. A little sharing of burden may not be bad for you”, the purported remark by a senior government functionary has sent ripples across government circles.

The functionary is said to have observed a recent interaction with some industry representatives, who told him about rising costs of raw materials due to the conflict in West Asia.






While being empathetic to them and assuring them of all possible support from govt, the functionary suggested that the industry could absorb some of the increase in costs of materials, instead of passing on all of that to consumers.

Meanwhile, on Friday, while chairing a high-level review meeting with senior officials and port authorities, shipping minister Sarbananda Sonowal warned terminal operators that the West Asia crisis must not become an “opportunity for profiteering”. He said, “All charges must be clearly documented and monitored to protect trade interests.”

This comes amid complaints of exporters not getting the full benefit of concessions allowed by port authorities immediately.

Ministries and departments — after getting inputs from industries on short supply or non-availability of key materials — have been taking up matters with agencies concerned and also with “higher levels” for finding solutions.

Govt has set up seven empowered groups of secretaries (EGoS), which regularly examine potential disruptions to trade, supply chains and logistics, including shipping routes, ports, aviation corridors and critical imports and exports. These have also been taking mitigation measures, and monitoring domestic availability and price stability of essential commodities.

Officials said that during a meeting at the Prime Minister’s Office (PMO) on Wednesday evening, EGoS members shared the steps taken so far and also the problems being faced. These were discussed in detail, they said. One of the issues that dominated the discussion was the availability of packaging materials for food items, milk and drugs, affected due to the disruption in the supply of ethylene and propylene.

“As of now, there have been no issues as stocks are available. But soon it may become a major cause of concern. So, the departments concerned were asked to work on alternative packaging materials. There was a suggestion that dispensing machines for the sale of milk can be deployed in cities to reduce demand for pouches,” said an official.

Taking note that India has excess stock of rice and wheat, it was suggested in the meeting that now the focus should be more on exporting them on humanitarian grounds. “Though a ceasefire has been announced, top officials have directed all departments to be prepared and work on short-, medium- and long-term strategies. Options will be explored on how to export more wheat and onions by ship, and basmati rice and other high-value crops by air,” said another official.