TIRUPPUR: The festive season has brought some relief to butter and ghee manufacturers in Uthukuli, who have been hit by a dip in sales. Manufacturers say demand for these goods has increased by 20% compared to last year’s festive season. Butter and ghee prices increased by Rs 20 per kg due to the increase in orders.
Uthukuli is famous for butter and ghee, produced as a cottage industry for several years. However, the number of companies involved in butter and ghee production has come down from 59 in 2005 to 20 in 2024. Existing manufacturers say a slump in demand, 12 % GST, and manpower shortage have taken a toll on the sector.
In this backdrop, this year's festive season has become a small relief. Manufacturers say orders have increased by 20 % compared to last year. P Rasu, branch manager of Avarampalayam Sarvodaya Sangam (AVPSS), which has been engaged in the business since 1989, said, “This year’s festive period has been good for us and the order flow increased by 20%. In the current festive season, we produce and ship about 750 kg of butter and 250 kg of ghee per day. Mostly we shipped to districts like Tiruchy, Thanjavur, Kumbakonam, etc.”
“On normal days, we produce up to 300 kg of both butter and ghee. The festive season starts with Gokulashtami and continues till Deepavali. Sales will rise again during Pongal. Currently, we are selling butter at Rs 520 per kg and ghee at Rs 620 per kg. Butter and ghee prices have increased by Rs 20 per kg due to increased orders,” he added.
R Kumar, a local manufacturer, said, “On normal days, 45 tonnes of butter and 30 tonnes of ghee are produced in Uthukuli every month. But it increases during the festive season.
Since this is the festive season, we need to despatch the orders immediately. If a trader places an order today, the order will be delivered by the next morning. We have some long-standing requests. In particular, cold storage facilities should be constructed to store milk, cream, and curd in Uthukuli.” he added.
