HYDERABAD: The Civil Supplies department has warned rice traders against hoarding stocks, diverting supplies to the black market and artificially inflating prices, saying the Preventive Detention (PD) Act would be invoked against habitual offenders.
GV Shyam Prasad Lal, Director of Civil Supplies and Chief Rationing Officer, said on Monday that the department was enforcing the prescribed maximum retail prices for major varieties of rice to protect consumers from arbitrary price increases.
He pointed out that BPT and KNM varieties have been capped at `66 per kg, while RNR and Telangana Sona cannot be sold for more than `74 per kg. The maximum price for HMT and JSR varieties is `79 per kg.
Lal said the department was conducting field inspections to check attempts by traders to create artificial scarcity and push up prices through rumours of shortages.
He advised retailers against panicking or increasing prices due to pressure from wholesalers and middlemen. Those facing difficulties in procuring stocks could approach their respective District Civil Supplies Officers (DCSOs), submit their indents and obtain rice directly from millers, bypassing wholesalers and traders, Lal said.
He cautioned retailers against acting on unverified reports of shortages, alleging that middlemen were circulating such rumours to drive up prices.
Lal said inspection teams had detected instances of weight manipulation, including the sale of 25-kg bags bearing 26-kg labels. Officials had also found violations of maximum retail price rules, with original price tags concealed under stickers carrying higher prices.
He said inspections would continue and warned that habitual offenders involved in illegal hoarding and market manipulation would face action under the PD Act.