A study on Challenges faced by Dairy Sector in India during Covid -19

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Mr. Chethan R, Dr. Pankajakshi R


India is currently ranked as the largest milk producer, dairy industry being the major commodity in agriculture contributing 5% of the national economy, witnessing 6.4% (CAGR) in the past 5 years. Indian dairy industry is expected to grow by 9-11% in financial year 2022.Dairy sector is dominated by fluid milk with emerging value-added products such as cheese, yogurt, flavoured UHT milk growing at a faster rate than other products.Pandemic has affected severely the lives of farmers who depended purely on milk produce by decrease in purchase price, Industries faced challenges to sell and supply milk, worker shortages and increase in production costs, consumers faced challenge to purchase the dairy products and raise in dairy products cost, since lockdown was imposed throughout. The study is viewed in three different dimensions, especially farmers, dairy industries, consumers and the problems faced by them in pandemic situation. The new experience of pandemic also led to shut down of many dairy industries due to lockdown that was imposed on schools, restaurants and hotels.

The purposes of this study based on the conceptual data to identify the challenges faced by dairy industry in India during COVID-19 pandemic. The authors in the paper have tried to suggest the best progress that is required to overcome the future pandemic situations for dairy industries. Specifically, data has been collected from the online portals and e-papers to identify and analyse the challenges faced by the dairy industry during pandemic condition.The need of the hour is to also identify the best possible actions that can be taken by dairy industries and government to meet the challenges faced.  The government cooperation is required for hand in hand program with dairy industries by planning long term strategies like providing financial reliefs to industries, discounting on taxes and setting up standard MSP (Minimum Support Prices) to farmers and allowing the best possible supply chain to reach customers. The basic challenge in faced to maintain quality and quantity with supply chain being diversified. The dairy product being perishable requires suitable logistics with supply chain operations to ensure the freshness.

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