FOOD INDUSTRY

Impact of Covid-19 on Staple Food Supply

Chain
 Problems faced during initial phase of lockdown:
• Farmers were unable to go to their fields to harvest their crops due to
lockdown.
• Lack of labour for working on fields as most of them fled to their
homes.
• Transportation issues in making the produce reach the market.
• Stocks produced in large amount before lockdown.   

According to  a survey, 1 in 4 farmers reported storing their crops instead

of selling them due to the lockdown and 12% of farmers were still trying
to sell their crops. Small/marginal farmers were significantly less likely to
be able to sell their crops as compared to large farmers.
Measures taken by the government to regulate food supply

• Free distribution of ration by the central

government  to the poor till november 2020
under the PMGKAY.
(reference pt.2)

• In cities like Chandigarh, the administration

distributed vegetables and fruits through
CTU buses to various sectors at fixed prices.
This was done to reduce the spread of the
virus. (reference pt.3)

• According to Times of India, Prices of most

of the key food items remained stable during
lockdown. (reference pt.4)
 Rumours on Meat products
• The poultry and meat industry was hit more
from the rumours than the lockdown.
• Fake news and rumours about how
consuming chicken or other meat products
can spread the dreaded disease contributed
to a sharp decline in sales of 
these products.
• the rates of chicken/eggs fell up to Rs 70-
90, making it difficult for the poultry
farmers to survive. As a result they either
killed their birds or distributed it for free.
Lolsur village in Belagavi
(reference pt.5) (reference pt.6)
Restaurants and local
food points
◦Hard hit on restaurants and food eateries during
covid 19 (40 to 50 percent decrease in revenue)

◦Restaurants are opening only with strict

instructions to follow social distancing norms. 

◦Lack of customer's willingness to come to food

eateries due to fear of covid

◦Most of them are now relying only on

takeaways/ doorstep delivery
(reference pt.7 & 8)
 ADVERTISEMENT OF ZERO CONTACT DELIVERY
• Online Payments
• No Cash On Delivery orders
• Regular thermal scanning of delivery boys.
• Frequent sanitization
 Revival through
Contactless delivery
o According to YouGov survey,  during
the initial phase of lockdown, 
Zomato witnessed a weakening customer base
from 46.3 to 41.7 whereas for Swiggy, the
scores were from 48.8 to 42.4.
o To combat the crisis, both Zomato
and Swiggy opted for no contact delivery
and even introduced sale of essential items. 
o The 'Buzz' score for Zomato saw a rise
from 47.5 to 50.6 between March 15 to April
16. For the same time period, the scores
for Swiggy stabilised , with a marginal
increase from 50.6 to 51.0. 
(reference pt.9 & 10)
Immunity booster tag
• Any product advertising immunity boost in
covid-19 saw an increase in demand. These
products claim to contain herbals like Turmeric,
    Tulsi, Ashwagandha, Giloy

• Revival ideas like Immunity Sandesh in

Kolkata and Immunity Khakhra in Gujrat
came up

• Dabur has reported a 12% growth in its

standalone net profit , Rs 289.4 crore between
April and June 2020
(reference pt.11)

• Even oil companies like Fortune claimed that

antioxidants present in its Rice Bran Health oil
boosts immunity
 References
1) https
://indianexpress.com/article/explained/how-coronavirus-lockdown-has-impacted-indian-farmers-th
eir-yields-6421569
/
2) https
://theprint.in/india/pm-modi-announces-extension-of-govts-free-ration-scheme-till-november-end/
451738
/
3) https://
www.tribuneindia.com/news/chandigarh/buses-deployed-to-ferry-essential-commodities-in-curfe
w-bound-chandigarh-61831
4) https
://timesofindia.indiatimes.com/india/prices-of-key-food-items-stable-during-lockdown/articleshow
/75089839.cms
\
5) https
://www.financialexpress.com/economy/poultry-sector-looses-hope-as-sales-hit-more-by-rumours-t
han-lockdown-govt-says-eating-chicken-safe/1917922
9) https
://www.indiatvnews.com/business/news-dominos-pizza-launches-zero-contact-delivery-coronavirus-p
andemic-598646
10) https://
www.newsheads.in/business/companies/lockdown-20-zomato-swiggy-see-boost-in-business-article-61
357
11) https://
www.businessinsider.in/business/corporates/news/dabur-india-from-coronavirus-hit-quarter-with-a-big
ger-market-for-dabur-chyawanprash-and-dabur-honey/articleshow/77259855.cms

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