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Business News/ News / India/  COVID-19 lockdown: Britannia fears shortage of packaged foods
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COVID-19 lockdown: Britannia fears shortage of packaged foods

With restrictions on movement of goods, several companies are finding it hard to transport goods from their factories to warehouses

File Photo: Mint (Mint)Premium
File Photo: Mint (Mint)

NEW DELHI: Biscuit maker Britannia Industries has said continued impediments to supply of essential goods, amid the 21-day lockdown, will create a shortage of packaged food in the market over the next few days. The issue may prolong till everything, from warehousing to movement of trucks, and permits for manufacturing facilities, is activated across the country.

The maker of Tiger and Good Day biscuits has urged the government to ensure food processing is considered under essential category.

Currently, the food industry supply chain is disaggregated and dependent on inter-state movement of goods. This has caused a shortage of raw materials, and inventories across the chain, said Varun Berry, managing director, Britannia Industries.

"If even one link in the supply chain is broken, the country could run out of stocks of packaged food in the next 7-10 days," Berry said in a statement to the media.

Berry said authorities at the lower rung need to be informed about ensuring functioning of plants and movement of employees.

"Our factories are primed to manufacture products at this time with all due hygiene and social distancing protocols in place. But we need support from district authorities in allowing our factory workers to travel to the factory premises with appropriate safeguards. While the Central government has issued all necessary permissions, the immediate need of the hour is that it be percolated right down to the district authorities. This will help us kick start production and ensure un- interrupted supply of essential packaged foods throughout the country," he said.

Much like other large packaged consumer goods companies, Britannia too has seen plant closures, at least in pockets where heavy lockdowns are in place. With restrictions on movement of goods, several companies are finding it hard to transport goods from their factories to warehouses. Moreover, distributors and wholesalers of these goods too are finding it hard to ensure supply to retail stores.

Even though on Wednesday the MHA moved to issue fresh guidelines that sought to allow exemptions on movement of people and services during the 21-day lockdown across more sectors, companies are still facing issues in pockets, where movement of transportation remains a challenge.

Berry said it is "imperative that the supply chain for food products be restored in entirety and allowed to function with adequate safety measures and police protection."

Berry said that to ensure smooth functioning and availability of stocks in the markets, necessary permits need to be immediately issued for all the service providers to packaged foods industry.

"The supply chain includes suppliers of raw materials and packaging materials, food manufacturing factories, factory workers, transporters carrying materials and finished goods, depots, wholesalers, distributors and their sales men. Necessary permits need to be immediately issued to all of them," he said.

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 26 Mar 2020, 03:24 PM IST
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