FMCG companies seek 'essential service' status to meet demand hike amid coronavirus lockdown

Companies including Britannia, Parle, PepsiCo, Hindustan Unilever, Dabur, Coca-Cola, ITC, Nestle and Mondelez have written to the government on Tuesday through three separate industry bodies.
Representational Image.
Representational Image.

NEW DELHI:  Companies that supply meat, milk and household staples are struggling to redirect the sprawling food supply chain to meet the surge in demand after the government imposed a lockdown to bring the coronavirus pandemic under control.

Seeking immediate exemption from movement restrictions, companies including Britannia, Parle, PepsiCo, Hindustan Unilever, Dabur, Coca-Cola, ITC, Nestle and Mondelez have written to the government on Tuesday through three separate industry bodies. 

"We want the sector to be termed as an essential service, to avoid shortages on retail shelves and prevent consumer panic," said Mayank Shah, senior category head of Parle Products. "Local authorities are enforcing shutdowns of factories and creating ambiguity at the ground level, leading to unnecessary enforcement," the companies said in one of the letters to the government.

"In the last couple of days, there has been a significant amount of difficulty in running the factories and transportation of goods even though the government has rightly permitted food, vegetables, groceries and medicines to be excluded from the lockdown. However, enforcement authorities across states need to be given clear instructions so that these essential items and the supply chain around it is allowed to function," said an HUL spokesperson.

HUL is making every effort to produce handwash, sanitisers, floor cleaners and hygiene products but is unable to fulfil the surge in demand.

Officials of US India Strategic Partnership Forum have also warned that these restrictions would have a direct impact on farmers and their produce. “Supply chains for food are highly integrated; disruption to any one part will have a ripple effect and the impact would be felt back to the agriculture sector,” it said in a letter to consumer affairs secretary Pawan Aggarwal.

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