Visakhapatnam: Dairy industry in grip of crippling crisis

Visakhapatnam: The lockdown imposed by the Centre to strem the spread of novel coronavirus has crippled several sectors and the dairy industry in Visakhapatnam district is no exception.

Though milk falls under the essential commodities category, closure of hotels, cafeterias, sweet shops, ice cream parlours and milk shake corners proved a bane for milk suppliers as bulk consumption witnessed a deep dip ever since the lockdown came into effect.

Notwithstanding the mounting losses, dairy manufacturers say that it would take a minimum six months to a year to recoup losses and bounce back to normalcy.

However, the only solace comes in the form of household consumption as it sees no drop though its share is less. "The absence of institutional sale has certainly affected the business volume by 15 to 20 per cent. The average milk sale volume of five to six lakh litres per day during summer months has now come down to four lakh litres a day. When it comes to allied products of milk, there is a drop of 30 to 40 per cent in their consumption as the outlets remain shut due to lockdown. Thankfully, milk supply to consumers has been a hassle-free exercise despite the lockdown. Since milk forms a part of the essential commodities, we ensure its supply, sticking to strict deadlines," explains S V Ramana, managing director of Visakha Dairy.

Apparently, milk producers across the district are now staring at unprecedented economic uncertainty. Sharing the challenges faced in times of lockdown, managing director of Supraja Dairy Private Limited B Ramamurthy Raju says, "Procurement of milk from close to 10,000 farmers associated with the firm has always been more than the requirement with assured payment. But, with the supply to commercial units coming to a grinding halt, the unsold milk is now transported to far off regions like Chittoor and Ongole for the conversion of skimmed milk powder which again involves cost. With bills outstanding from commercial units for the month of March, drop in the overall milk consumption by 60 per cent and mounting expenditure, it would take at least a year to recoup the losses incurred." Supraja Dairy, which sells milk and its allied products under Milk Line brand, supplies milk to Visakhapatnam, Vizianagaram and part of East Godavari.

With gradual easing of lockdown restrictions expected by May 3, milk producers say it is still a long way to go for the 'business as usual' tag.