Economic analysis of the impact of Covid-19 lockdown on Indian dairy sector
By: Chandel, B.S. et al
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Material type: 
BookPublisher: Agriculture Situation In India Description: 77(8), Nov, 2021: p.21-27.Subject(s): COVID-19, Lockdown, Dairy sector, Economic losses, Welfare, Producers, Consumers
In:
Agriculture Situation In IndiaSummary: A sizeable reduction in demand of milk and milk products (MMP) due to COVID-19 lockdown has adversely impacted the milk producers and processors. The consequent decrease in prices of MMP has been instrumental in the losses of their stakeholders. The preliminary estimates of economic losses to the milk producers stand at ` 112.3 crores per day which are highly concentrated in nine states out of which two states, namely, Uttar Pradesh and Rajasthan alone are accounting for more than one fourth of these losses. The improvement in the welfare of consumers on account of decline in prices is not sufficient enough to compensate the producers, leaving ` 66.7 crores per day of economic losses uncovered. This dark shadow of lockdown is expected to last long with reduction in milk production and the profitability of dairy industry subject to the mitigation strategies adopted afterwards. It is suggested that procurement of milk by public and private dairy plants should be increased and the same should be utilized to produce dairy products having comparatively longer shelf life like butter, ghee, skim milk powder (SMP), etc. The additional workforce which returned to rural areas may prove to be a boon for the agriculture and dairy sector, provided they are trained in the respective field and channelized in the right direction by equipping them with productive assets like dairy animals, besides developing essential livestock supporting services, viz., veterinary and artificial insemination (AI) centres, milk marketing network and milk processing facilities. – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 77(8), Nov, 2021: p.21-27 | Available | AR125337 |
A sizeable reduction in demand of milk and milk products (MMP) due to COVID-19 lockdown has adversely impacted the milk producers and processors. The consequent decrease in prices of MMP has been instrumental in the losses of their stakeholders. The preliminary estimates of economic losses to the milk producers stand at ` 112.3 crores per day which are highly concentrated in nine states out of which two states, namely, Uttar Pradesh and Rajasthan alone are accounting for more than one fourth of these losses. The improvement in the welfare of consumers on account of decline in prices is not sufficient enough to compensate the producers, leaving ` 66.7 crores per day of economic losses uncovered. This dark shadow of lockdown is expected to last long with reduction in milk production and the profitability of dairy industry subject to the mitigation strategies adopted afterwards. It is suggested that procurement of milk by public and private dairy plants should be increased and the same should be utilized to produce dairy products having comparatively longer shelf life like butter, ghee, skim milk powder (SMP), etc. The additional workforce which returned to rural areas may prove to be a boon for the agriculture and dairy sector, provided they are trained in the respective field and channelized in the right direction by equipping them with productive assets like dairy animals, besides developing essential livestock supporting services, viz., veterinary and artificial insemination (AI) centres, milk marketing network and milk processing facilities. – Reproduced
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