Coronavirus Outbreak: Mother Dairy edible oil production, sales drop 35-40% post-lockdown

Leading milk supplier Mother Dairy, which sells cooking oils under Dhara brand, on Monday said the company's production and sales of edible oils have been hit by 35-40 percent post nationwide lockdown to control the spread of COVID-19

Press Trust of India April 13, 2020 16:19:46 IST
Coronavirus Outbreak: Mother Dairy edible oil production, sales drop 35-40% post-lockdown

New Delhi: Leading milk supplier Mother Dairy, which sells cooking oils under Dhara brand, on Monday said the company's production and sales of edible oils have been hit by 35-40 percent post nationwide lockdown to control the spread of COVID-19.

While production has been hit due to labour shortages and logistics issues, the demand is down because of closures of hotels, restaurants and cafeterias that contribute a significant part of sales.

Mother Dairy used to produce 650 tonnes of edible oils per day before the lockdown. The sales per day were also in the same range.

Coronavirus Outbreak Mother Dairy edible oil production sales drop 3540 postlockdown

Representational image. PTI

Responding to an e-mail query, Mother Dairy spokesperson said the impact on business has been in the range of 35-40 percent during this lockdown period.

Click here to follow LIVE updates on coronavirus outbreak

"Initially there was a significant decline in production after lockdown as labour and manpower were unavailable. However, the issues are being addressed gradually.

There is a demand for our product as it's an essential food item, however, due to logistical issues and closure of business establishments sales have been impacted," the spokesperson said.

Asked whether the company increased prices of cooking oils after lockdown, the spokesperson said the price revision is a routine activity in our business due to volatility in raw material prices.

"Prices were not changed due to lockdown announcement but were changed as a routine business exercise," the spokesperson said.

Mother Dairy has an annual production capacity of 2 lakh tonnes and approximately the same is the demand of Dhara.

"We operate with 18 third party packing units. All these plants are strictly following safety and hygiene guidelines announced by the government," the spokesperson said.

Last week, leading edible oil firm Adani Wilmar, which sells cooking oil under Fortune brand, deputy CEO Angshu Mallick had told PTI that the company's production and sales have been hit by 40 percent and 25 percent, respectively, after lockdown.

The country's total edible oil demand is 230 lakh tonnes annually, which is largely met through imports.

India's total vegetable oil (edible and non- edible) imports increased 3.5 percent to 155.5 lakh tonnes in the 2018-19 marketing year (November-October).

While shipments of edible oil increased to 149.13 lakh tonnes in the 2018-19 marketing year from 145.16 lakh tonnes in the previous year, the imports of non-edible oil grew to 6,36,159 tonnes from 5,09,748 tonnes during the period under review.

During November 2019 to February 2020 period of the current oil year, imports have fallen by 6.1 percent to 45,63,791 tonnes compared to 48,62,849 tonnes in the corresponding period of the previous year.

Updated Date:

also read

India logs 4,129 new COVID-19 infections, active cases declined to 43,415
India

India logs 4,129 new COVID-19 infections, active cases declined to 43,415

The active cases comprises 0.10 per cent of the total infections, while the national COVID-19 recovery rate has increased to 98.72 per cent, the health ministry said

India logs 4,369 new COVID-19 infections, active cases decline to 46,347
India

India logs 4,369 new COVID-19 infections, active cases decline to 46,347

The active cases comprise 0.10 per cent of the total infections, while the national COVID-19 recovery rate increased to 98.71 per cent, the health ministry said

Scientists develop face masks that can detect viral exposure: How will it work?
Health

Scientists develop face masks that can detect viral exposure: How will it work?

The sensor used in the mask can respond to as little as 0.3 microlitres of liquid containing viral proteins, about 70 to 560 times less than the volume of liquid produced in one sneeze and much less than the volume produced by coughing or talking