The Covid-19 pandemic has been causing economic woes to companies wih the 21- day lockdown underway across the country and though ranging under essential services segment, the food processing sector, has been finding it tough in coping with the situation and its impact on business.

The biggest worry has been disturbance in the supply chain and companies are trying to identify ways to handle the situation as it is important to maintain the supplies.

Explaining the scenario, Simon George, president, Cargill India, states, "Like other industries, we are facing some difficulties in managing supply chains and logistics like interstate and intrastate transportation services. They are required to transfer grains, food ingredients / raw materials that we supply for the manufacture of food products and finished goods to big companies. We are working with government authorities to see how we can mitigate any disturbances in the supply chain.”

He said that Cargill has 12 manufacturing locations across India engaged in the production of food and non-food items.

“We have already speeded up to keep our operations going as we supply vital commodities in India such as edible oil, wheat flour, dairy feed, poultry and aqua farmers, etc. that are critical to feeding people and animals.,” said George, while adding, “At Cargill, we are doing our best to ensure packaging and warehouse and transport operations impacting these essential food items are not hampered due to labour shortage or logistical challenges and deliveries can happen promptly. We have halted non-essential operations in full compliance with the government’s mandate.”

He added, “At this moment our focus is on just two things keeping our people safe and ensuring that food reaches where it is needed. We are closely monitoring the situation to assess the situation and take an account once we are out of this crisis. Cargill is doing everything reasonably possible, to minimise business disruptions. As we provide essential ingredients, feed and food that nourish people and animals, we are taking this responsibility very seriously and strive to keep our operations running.“

Meanwhile, dairy giant Mother Dairy is also trying to maintain the supplies as milk is a very essential commodity.

“At Mother Dairy, we are relentlessly working towards ensuring and meeting the demand of consumers for milk, milk products, Safal fresh fruits & vegetables and our Dhara edible oils across the region with no major supply disruptions. We have taken all adequate measures and are closely working with all our stakeholders to ensure uninterrupted, seamless supply chain even in these challenging times,” said a Mother Dairy spokesperson.

Similarly other food companies are also making sure that supplies remain unhurt and therefore taking measures for the same.

Highlighting measures taken by his company, Cornitos MD Vikram Agrawal said, “Cornitos products are being manufactured by Greendot Health Foods Pvt. Ltd. in Roorkee after taking all necessary Covid-19 precautions as notified by government. Cornitos manufactures ready-to-eat snack products like wheat flour tortilla wraps, nacho crisps, taco shells, dips, roasted nuts and seeds and pickles. We are ensuring as well as encouraging our distribution partners, to maintain manpower and vehicles required for supply of Cornitos products without any interruption and delay. We are taking care of sanitisation of transport vehicles and manpower associated with it, as well.”

The company, meanwhile, suggested that Central government may appeal to transport associations to help the nation in this critical period with respect to transportation charges and its availability.

The company rues that while it was trying to maintain its supplies but ground realities are different than what Central government is notifying. Local administration is not cooperative and not allowing interstate movement of trucks. The company further suggested that to ensure smooth supply of food products every state should set up a 'Nodal Agency' to coordinate uniform dissemination and implementation of Central government guidelines. District magistrates and police in every district may be instructed to honour permits issued by authorised persons from other states/districts.

Meanwhile, the MoFPI (Ministry of Food Processing Industries) has created a Task Force at its office to address the grievances of the food sector companies.

Agarwal says that the Task Force and Grievance Cell made by MoFPI is a right move. It will help discuss and act on all issues related to the sector on a daily basis and keep a track of them during the lockdown period. Grievance Resolution Cell should help in proper interpretation of guidelines and resolving difficulties faced by the industry owing to enforcement variability issues.