Cuttack, Dec. 9: The civil supplies department is keeping a close watch on the possible 'artificial scarcity' that looms large over the essential food grains in view of the strike by the traders' association.

The traders under the aegis of the All Odisha Traders' Association, have stopped procuring pulses, wheat and wheat products from today demanding abolition of 5 per cent of VAT on such items.

The traders want introduction of 1 per cent entry tax instead of VAT.

District administration officials claimed that the traders at Malgodown had opened their business units, and the sale of pulses and wheatcontinued at the largest wholesale market in the city today.

'We are keeping a close watch on the situation, and market intelligence officers are in the field. So far, there has been no scarcity of pulses, wheat and wheat products,' said civil supplies officer Amar Mohapatra.

Despite the claims of the district civil supplies department, people are worried that non-procurement of these items will be felt in two to three days.

Usually, the traders keep stock for a week or so.

The effect of the strike was felt partially with the retail price of pulses going up by at least Rs 2 per kilogram and Re 1 per kilogram in the price of wheat in the city in the past 24 hours.

A Malgodown trader said that over 90 per cent of the existing stock that had been purchased last week was exhausted by last night and the remaining stock would cater to the retail traders' requirements till tomorrow evening.

'Our strike is continuing,' said Cuttack Chamber of Commerce joint secretary Srikant Sahoo.

However, food and consumer welfare secretary Madhusudan Padhee had yesterday said: 'The state government will invite the traders shortly for a discussion on the issue.'