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The Psychology of Panic

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17.03.2026

India is a nation that has repeatedly demonstrated remarkable resilience. From wars and economic challenges to pandemics and natural disasters, the country has faced adversity with collective strength. Yet, every few years a familiar pattern emerges whenever uncertainty spreads across society. This tendency to stockpile essentials during moments of uncertainty raises an important question. Why do Indians often react so quickly to perceived shortages? The answer lies partly in the country’s historical experience. For several decades after independence, India struggled with supply constraints and food insecurity. Ration cards, controlled distribution of commodities, and long queues for essential items were part of daily life for millions of families. Even in the 1970s and 1980s, interruptions in the availability of sugar, kerosene, cooking gas, and other necessities were not uncommon.

A sudden message circulates about salt disappearing from markets, onion prices rising beyond reach, cooking gas becoming scarce, or essential medicines running out. Within hours markets begin to crowd, shelves start emptying, and people begin purchasing far more than they immediately need. What begins as speculation quickly transforms into a nationwide rush for supplies.

Another powerful driver is the speed at which information spreads in modern India. A single message suggesting that a particular commodity may soon become scarce can quickly influence public perception. People may not completely believe the message, yet they worry about how others might react. If individuals expect that large numbers of people will rush to the market, they decide to act first. This anticipation alone can trigger widespread purchasing. Economists often describe this situation as a self-fulfilling shortage. The commodity........

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