Impact of COVID-19 on Food Industries

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Kajal Kumari1, Aditya Anand Jha2
1&2 Phulo Jhano Murmu College of Dairy Technology; Birsa Agricultural University,
Ranchi, Jharkhand-834006
E-mail id: kajalsmileykk@gmail.com1, adityajha880@gmail.com2

Introduction:

The spread of novel corona virus has been devastating globally. This outbreak came into light on Dec 31, 2019 as informed by World Health Organization (WHO) in Wuhan City in Hubei Province. Gradually this disease spreaded to the rest of the entire world. On Mar 11, 2020, WHO has declared nCoV outbreak as a global pandemic. The virus has been named “Severe Acute Respiratory Syndrome – Corona Virus 2” (SARS-CoV2) and the disease is now called “Corona Virus Disease 2019” (COVID-19) or “ 2019 novel Corona Virus”(2019-nCoV).
The COVID-19 Pandemic is defining the global health and financial crisis of our time and the greatest global humanitarian challenge. Besides on health issues, it also triggers a great loss in the economic system. It has affected our whole biodiversity including many food industries and also humans. This corona virus has seized all its essence and now farmers including food industries are struggling. Farmers seemed set for a pick-up this year, as bountiful rains had brought a bumper crop then India was put under a national lockdown since last more than two months in a bid to stop the spread of corona virus. This has effected the food industries also. Globally confirmed cases surpassed 9 billion where as in India 4,41,643(confirmed case), 2,48,450(recovered), 14,027(deaths) has been reported on 23 June, 2020 by worldometer.

Impact on Food Industries during COVID-19:

The effects of COVID-19 are felt around the world. Food industries are facing significantly reduced consumption and supply chain disruption challenges. As a precaution, the government has issued advisories to close all the malls, restaurants, shops, factories in all states. Food service providers are now claiming that their business has seen a drastic drop. About 91% of the total workforce is from the informal sector, they include agricultural, migrant and other workers who entirely depend on daily wages as a mode of living. These vulnerable groups and their families will be the hardest hit during the unprecedented times. The fear of the virus spread faster than the virus leading to the following consequences.
The worst part of the countrywide lockdown was that it coincided with the country’s peak harvesting time of a variety of crops of the season. Summer vegetables and fruits were ripened, ready to pick; wheat, paddy &barley crops were ready for harvest but the all farmer’s hard work went in vain due to sudden halt of the country. T he temporary workers in cities had to leave to get back to their villages as surviving in the city without regular salaries was implausible. As transportation froze, these people were left with no choice but to walk, resulting in chaos. This mass departure of the migrants to their homes instantly brought the farming activities to a standstill owing to the shortage of labourers. The farmers were forced to sell their produce for a lower price as storage facilities were absent. But the retailers took advantage of the lockdown situation by improving exorbitant prices on existing stocks. As Farmer is The God Father of the company. Shortage of raw materials resulted in low production rate. The retailers lacked the manpower due to the absence of transportation workers to procure finished goods to supply it to respective shops. The supply chain, which is the connector between the producer and consumer lacked in communication. It has been observed that there was a huge surge in demand for processed foods like instant noodles, biscuits & snacks. But in the meantime, all food processing companies companies alike Nestle, Britania, ITC, Parle & PepsiCo are running at low capacity labourers.

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Response of the Central and State Governments.:

The Central Government announced relief packages. On May 13, 2020 Union Minister Nirmala unveiled the fourth tranche of government Rs. 20 lakh crore economic package to provide relief to various segments of the economy battered by corona virus lockdown. The third tranche of the measures was announced under the “Atmanirbar Bharat Abhiyan” focuses on agriculture & allied activities. This includes that the fund worth Rs. 1 lakh crore to be given to agricultural cooperative societies, farmer producer organization and start ups; Rs.10, 000 crore for micro food enterprises; Rs. 20,000 crore for fisherman; Rs. 4000 crore for promotion of herbal cultivation. Government has taken a great step to provide relief to the food industries. The central government has announced the payment of the first installment of Rs.2000 of the PM-Kisan scheme to farmers. The government has raised daily-wages under the MNREGA scheme from Rs. 182 to Rs. 202 per day. RBI has released a suspension order of interest costs on agricultural loans for the next 3 months. The government has ensured the distribution of food grain, other household items and cash support of Rs. 500 to all BPL cardholders on a priority basis for next 3 months for “Jan-Dhan” account holders. RBI allowed a 3 months moratorium on all term loans, agricultural loans, retail and crop loans,3% concession on the interest rate of crop loans. The above package is a booster to the food industry.

Challenges for all Business:

The primary challenge is obvious that to recover the costs. In recognition to this, some government have passed stimulus programs to assist business with these challenges. Employees need to remain healthy for a business to continue. It includes introducing social distancing measures, changing personal protective equipment (PPE) requirements, regularly wiping downs equipment &surfaces, limiting visitors and changing delivery protocols. In addition to these, more rules are to be found. Food Safety is still the primary concern of all manufacturers. There is currently no evidence that the virus has been transmitted via food or food packaging, but there is evidence that it can remain viable on certain substances for longer period of time. It is essential to keep personnel healthy ensuring all the hygiene protocols are followed. Food operatives also need to consider the importance of their product. All should maintain social distancing of 1 meter among themselves and try to avoid maximum contact. Food Safety Management system should be updated and readily available for upcoming audit. It consist of updated policies surrounding management of crisis, risk assessment, purchasing, emergency management & contingency plans, personnel records, deviations, change control, internal audits, documentation, complaints & recalls.

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Conclusions:

Overall, the COVID-19 pandemic is a crucial juncture in the Indian history. The evident trails from the rest of the world were helpful for the Indian officials to take preparedness & response measures at the right time to tackle the pandemic. The bold & decisive leadership of the central, as well as the state government has implemented remarkable strategies to protect the livelihood of millions. The Indian government has taken huge steps to feed the entire nation & protect their lives &livelihoods amid the corona virus outbreak. Hoping this cloud has a silver lining, in reshaping the society’s potential for greater food security &food sovereignty, thus paving the waving the way to efficient food system. And again we can feel free to enjoy our favorite, scrumptious & mesmerizing dishes at the same rate we used to enjoy initially.

References:

• www.fao.org
• mondaq.com
• www.sgs.com
• www.worldometer.com
• www.fda.gov
• www.bbc.com

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