26 August,2009 11:37 AM IST | | Urvashi Seth
Recent raids in the city reveal the ugly face of retailers who have been hoarding essential food items, leading to their unavailability and soaring prices
It's not just erratic rainfall, an accompanying drought and lower agricultural produce that are burning holes in your pocket when it comes to basic food items.
Big traders, who ironically offer the 'cheapest' rates, are the real reason behind soaring prices.
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Some of them have been hoarding essential commodities, revealed recent raids by the Food, Civil Services and Consumer Protection Department (FCSCPD).
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House Full: The super-sized containers that usually hold rice, dal and sugar lie taped shut at the Big Bazaar outlet in Mulund. |
The department has been getting tough with retailers and wholesalers, who officials claim have been hoarding more stock than they are permitted to.
"We have received a number of complaints from consumers about the soaring prices of pulses, wheat, sugar and rice among others.
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The FCSCPD has asked us to get tough on traders who are piling up stock beyond permissible limits.
We are now inspecting all those stores who are not adhering to the law and that includes everyone from big retailers to small stores across the city.
The law is the same for all," said an official from the rationing office, which is now sealing and confiscating extra stock at rogue stores.
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One such store is India's biggest retail chain, Big Bazaar, owned by the Future Group. Rationing officers raided all the outlets in Mumbai over a month.
An officer revealed that Big Bazaar has flouted the rule and they are in the process of filing a case against the outlet.
No license
"Our officers are getting tough on all those traders who are flouting the rule.
The Big Bazaar at Kandivli didn't even have a Retail and Dealer license that would have allowed it to keep a certain amount in stock. We seized 4,400 kg of sugar from the store worth Rs 1,40,800," said the officer.
The rationing department has also lodged an FIR against the store at Samta Nagar police station, Kandivli, for the same reason.
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When this reporter visited the Big Bazaar at Mulund, commodities like dal and sugar were not available. The super-sized containers that usually held rice, dal and sugar, had been taped shut.
An official from the store said, "We have enough stock with us but we are unable to use it, as the packets and containers were sealed by the officials.
That is why there is less stock available on the shelf." The official confirmed that the store had been raided.
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The official from the rationing department revealed that wholesalers like Metro Cash and Carry India did not have the licence to stock.
Metro offers over 18,000 articles at the wholesale prices for hotels, restaurants, caterers, food and non-food traders, institutional buyers and professionals.
"The officials at Metro gave us an excuse saying the papers were not available with them at the store and asked for a day to get the licences from the head office.
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We gave them 12 hours, but we didn't get any reply from them after which we filed an FIR at the Bhandup police station," said the official.
Other major retailers such as Shoprite Hyper at Mulund, D Mart at Powai and Magnet Mall at Mahim had also been raided.
Amount of excess stock seized by the rationing department
(List provided by Ration Office)
1)u00a0Metro cash and carry at Bhandup: 55 Kg of sugar worth Rs 6,73,650.
2)u00a0Big Bazaar store at Kandivali: 4400 Kg of sugar worth Rs 1,40,800.
3)u00a0Magnet Mall at Mahim: seized grains and pulses worth Rs 3,72,733.
4)u00a0Shoprite Hyper market at Mulund: seized 2330 Kg sugar and 3591 Kg of pulses.
5)u00a0D Mart Mall, Powai: seized 1200 Kg of sugar and 2515 kg of pulses
Figures of maximum the traders can stock
Wholesaler:
Sugar:
Max: 2 lakh kilos
Pulses:
Max: 10 lakh kilos
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Rice:
Max: 5 lakh kilos
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Retailer:
Sugar:
Max 20,000 kilos
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Rice:
Max: 20,000 kilos
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Pulses:
Max: 50,000 kilos
Under the Essential Commodities Act 1959, punishment for minor irregularities include, 50 per cent of license fee and fine; average irregularities include, full license fee and temporary suspension of license, while major irregularities include, suspension of license and a FIR is lodged against the retailer.
Buyers speak
I am forced to cut down on my shopping list due to rising prices. If the traders are piling up stock how will we eat?
Hema Lakhani, a resident of Vikhroli
The recession has hit our household budget. If part of the reason is because stores have been hoarding foodgrains, the guilty should be punished.
Rita Agarwal, a Juhu resident
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The Other Side
Big Bazaar
Atul Takle, head of corporate communications, Big Bazaar agreed that officials had conducted a check, but denied that they had sealed any excess material.
"They had come for a regular check during our Mahabachat scheme but no stock was sealed or seized," said Takle.
Shoprite Hyper, Mulund
Said it was company policy not to speak to the media. "Our store has thousands of footfalls every day.
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It becomes very difficult for us to tell our consumers that we do not have stock. It is therefore necessary that a big store like us will keep some extra stock to meet demands," said an official on the basis of anonymity.
D Mart, Powai
"We won't be able to speak on this as the matter is in court."
Magnet Mall, Mahim
Nobody from the store was available for comment despite repeated attempts.
Metro Cash and Carry India
Nobody from the stores was available for comment despite repeated attempts over two days.
Prices of the commodities
Tur dal:
August: Per Kg: Rs 90
July: Per Kg: Rs 100
Sugar:
August: Per Kg: Rs 35
July: Per Kg: Rs 27
Rice:
August: Rs 80- 130
July: Rs 70- 120
