The FMCG sector is actively preparing to tackle any disruptions caused by rapidly rising Covid-19 cases in the country.

Food companies, dealers and distributors are working towards increasing stocks of daily essential products such as cooking oil, rice, pulses, wheat and other items in order to avoid any supply disruptions due to local restrictions.

Not just essential food items, but companies are also stocking up on packaged food, beverages and other important goods to avoid shortages.

Food manufacturing and processing companies have already started increasing their inventory to ensure smooth supply, in case the fresh wave of infections leads to prolonged restrictions.

The fact that food companies are already ready with additional inventory is crucial as it will not lead to shortage of essential commodities — something that was witnessed during the first lockdown in 2020.

While most companies do not expect severe restrictions seen during the first and second wave, they want to avoid any sudden disruption that may arise during the fresh wave of infections in India.

Many food companies claim that demand from dealers and distributors for products such as rice and pulses has been rising over the past few days. Distributors are stocking up in order to ensure smooth distribution to customers even if restrictions are imposed in view of rising cases.

The availability of essential food items will also keep inflation in check and there won’t be any sharp price hikes like during the previous waves.

On the economy-front, the fresh surge in Covid-19 cases in India is unlikely to cause a massive disruption as the nation is better prepared to tackle the situation. However, the restrictions due to infections are likely to have a short-term impact on the economy, especially on contact-heavy sectors.