Are Mother Dairy milk supplies on track? Check what problems the company faces in lockdown

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Published: April 1, 2020 10:59:41 AM

Mother Dairy, one of the leading dairy companies in Delhi NCR, has said that while supply-chain problems persist for the company due to the lockdown, it is prepared to handle the situation.

While the company currently is not facing issues related to packaging material of the milk, other items are posing problems.

Mother Dairy, one of the leading dairy companies in Delhi NCR, has said that while supply-chain problems persist for the company due to the lockdown, it is prepared to handle the situation. While the company currently is not facing issues related to packaging material of the milk, other items are posing problems. “Corrugated boxes, packing paper cups and other things, these are going to be a problem because their labour is also not available. We are facing problem in re-starting the whole cycle,” Sangram Chaudhary, executive director, Mother Dairy, told ET Now in an interview. The logistics is also posing much challenge but the company said that it is prepared to manage as it has been doing in the last few days as well.

Mother Dairy’s rival Amul had also recently said that while the company has seen a many lockdowns, curfews and riots in the past, the current situation has brought its own set of challenges. “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 this week. He added that to make 30 lakh-odd farmers in around 18,500 village ensure social distancing has further added to the difficulties of the FMCG company.

As the country has been put under a 21-day lockdown in the wake of the coronavirus, the dairy company which makes curd, cheese, ice creams, among other products said that while there have been no issues on the procurement side, the demand has slumped in the last few days. Amul has witnessed a 30% demand drop from average with the shutting down of hotels, restaurants, caterers and even tea shops across India. “The exodus of migrant laborers, whether from Delhi, Ahmedabad or Surat, back to their villages, will also have an impact on demand,” RS Sodhi wrote in the newspaper. The dairy company now seeks immediate government intervention to take care of the surplus milk situation.

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