As the nation is battling the coronavirus crisis with a 21-day lockdown, Gujarat based-Amul too is facing a drop in demand.
As the nation is battling the coronavirus crisis with a 21-day lockdown, Gujarat based-Amul too is facing a drop in demand. Despite this, MD RS Sodhi says that the lockdown situation is nothing new for the company which has sailed through several riots, curfews or natural calamities in the past. However, this time has brought a new set of its own problems for the company. “The one big challenge for us in this lockdown, however, has been the need to maintain social distancing… Unlike in the previous “lockdowns” where the idea was to get as many people to physically come to office, this time we had to keep them to the minimum without any disruption in operations,” he wrote in The Indian Express. Enforcing social distancing among the 30 lakh-odd farmers in around 18,500 village societies has been equally difficult for the FMCG company.
Amul collects and processes roughly 260 lakh litres per day (LLPD) of milk. While there have been no issues at the supply side, the demand for milk has fallen in the last couple of days, RS Sodhi wrote in the newspaper. The same has witnessed a fall to 25% below the average. There are several reasons behind this demand slump. While people were stockpiling in the initial days of the lockdown, the households do not feel the need to hoard now. Further, the temporary shutdown of hotels, restaurants, caterers and even tea shops has also delivered a blow to milk sales. “The exodus of migrant labourers, whether from Delhi, Ahmedabad or Surat, back to their villages, will also have an impact on demand,” RS Sodhi wrote.
Since there have been no problems at the supply side, the dairy cooperative is now staring at a surplus milk situation. In the wake of the same, RS Sodhi said that the government must now urgently take stock of the situation.