Overview of the Covid-19 Lockdown's Impact on India's Livestock Sector
Year: 2024
Type: article
Abstract: "The COVID-19 pandemic represents the most significant global humanitarian crisis since World War II. The novel Coronavirus quickly spread worldwide, severely impacting the lives and livelihoods of millions. Due to its highly contagious nature, a nationwide lockdown was implemented on March 25, 2020, as a crucial measure to curb the spread of the virus." During the initial few weeks, the restrictions were strict and all non-essential activities and businesses, including retail establishments, educational institutions, places of religious worship, across the country were prohibited from operating. Subsequently, these restrictions are being gradually eased in a phased manner in most of the Country. India’s effort to combat COVID-19 virus has been praised over the globe. However, the lockdown came with an economic cost and cascading impact on all the sections of society. The Covid-19 induced lockdown in India was a huge economic shock. It stalled the economy with complete closure imposed on enterprises across all sectors. Even though agricultural activities were exempted, in the initial phases of the lockdown the agriculture value chain also faced large-scale disruptions. This had a serious detrimental effect on the rural Indian economy. The coronavirus pandemic has also triggered a massive reverse migration from the urban to rural areas in large parts of the country (NABARD,2020). The epidemic began in Chinese city Wuhan, but in a short time it has affected the entire world. The timeline of the facts of COVID-19 and control measures implemented in Wuhan, China from December 2019 to February 2020 (WHO,2020, Q. Lin et al.,2020). The outbreak of the Covid-19 pandemic is an unprecedented shock to the Indian economy. This sector was hit by two consecutive shocks in a short span of time, from 2016 to 2019. Its arrival in India took place in the month of January and first case India was recognized on 30th January, 2020 in Kerala and gradually it spread in whole of the country (Unnithan, 2020). In February 2020, the world health organization designated the disease COVID-19 and declared it as pandemic on 11th march. The virus that causes COVID-19 is designated severe acute respiratory syndrome corona virus 2 (SARS-Cov-2) (Li et al., 2020). The enforcement of three-phase continuous lockdown for such a long period of more than 1½ months has been a new experience for everyone (Biswal et al., 2020). Reduction in demand for milk and economic losses The reduction in demand for milk is the major factor of economic losses to the Indian dairy sector. It is quite understandable that demand for milk has reduced due to closing down of sweet shops, hotels/ dhabas, lesser churning of milk at creameries and shut down of tea shops round the corner. According to economic principles, whenever there is reduction in demand and the amount of production is almost same, it leads to reduction in effective prices which results into economic losses. Gokul dairy, was forced to reduce its procurement price paid to farmers from 31 to 29 (-6.45%) for milk containing 3.5 percent fat and 8.5 percent SNF (solids-not-fat). In Maharashtra, dairy farmers of Nashik used to sell milk at 50-55 per litre which reduced to 30-35 per litre (a reduction of approx 40 %) during the first phase of lockdown. Not only milk but the prices of other dairy products have also decreased due to slash in demand. The price of skimmed milk powder (SMP) has reduced from 330-340 per kg to 220-230 per kg and price of white butter (82% fat) reduced from 290-310 per kg to 250-260 per kg during this period. The economic losses depend on whether both consumers and producers are at loss or the loss of one is higher than another. Because ultimately, economic surplus losses are the sum total of losses faced by both consumers and the producers in the society. In this case, reduction in milk price leading to huge losses to the milk producers. Lockdown and price variation India continued producing 0.514 MT of milk per day even during the lockdown period due to covid-19 Owing to the closure of chilling units, halt in transportation and manpower shortage, farmers had to sell liquid milk at a throwaway price of up to Rs. 24-25 a litre, and even Rs. 19-20 a litre in some parts, amid fear of spoilage. Before the lockdown, however, dairy firms were paying Rs. 30-31 a litre for procurement. Dairy firms increased production of skimmed milk powder (SMP), cheese, and butter during this period due to demand of consumers decrease by 25%.Due to the lockdown, almost all the meat and poultry shops were shut in many places. Farmers have resorted to many ways to overcome the situation. In some parts, chicks were culled and in others, chicken was sold at a very low price. Requirement of milk in market decreased due to closer of local dairies, cantonment areas, sweet shops, hotels, restaurants as well as marriages which has resulted in average loss of Rs. 5 per litre, decrease in average selling price of milk from Rs. 43 to Rs. 38 during the lockdown.
Author: Parmar, D. V 1 ., Ashwar, B. K 2 ., Chaudhary, G. M 3 Chuahan, H.C4 , Chandankumar 5 , Mehul D Shrimali 6 and Ankuya, K.J 7.
Language: English
Topic: COVID-19 Pandemic Impacts
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6968324857
FWCI:
Cites:
Cited by:
Related to: