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Improving the resilience of the agricultural sector to external shocks

The impact of the COVID-19 pandemic on the dairy industry with reference to India

By: Upali Wickramasinghe, G.A., Adeeth Cariappa, A.G.

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Improving the resilience of the agricultural sector to external shocks

The impact of the COVID-19 pandemic on the dairy industry with reference to India

By: Upali Wickramasinghe, G.A., Adeeth Cariappa, A.G.

This study provides a quantitative assessment of the Indian dairy sector and aims to determine the underlying factors of the observed price movements. We analyse producer prices over time, differentiated by milk-producing ‘zones,’ and identify the underlying factors that might explain the observed discontinuities or interruptions in producer prices. The findings show no statistically significant change in wholesale milk prices immediately after the sudden lockdown was imposed in the five milk zones. However, retail prices increased in the East zone, while dairy product sales plummeted in all milk production zones. The study found disruption in milk marketing channels, logistics and transportation in the East milk zone, where the cooperative institutional structure is less widespread and active than in other zones. The East zone also has a thinly spread dairy infrastructure such as cold chains, exposing producers to market vagaries. The analysis confirms that the decision of the dairy cooperatives to continue to pay milk producers even when sales plummeted played a critical role in strengthening the resilience of India’s dairy sector during the COVID-19 pandemic. The findings show that building strong institutional infrastructure such as dairy cooperatives is necessary but insufficient for sustaining market resilience. Dairy processors need resources for assuming higher risks while relaxing certain regulations such as labour movements and enhancing access to essential inputs for maintaining production. It is crucial to provide government assistance for those who fail to use market channels for reasons beyond their control.

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Page Count

50

Publisher

Food & Agriculture Org.

Published Date

ISBN 10

9251382646

ISBN 13

9789251382646

Improving the resilience of the agricultural sector to external shocks

The impact of the COVID-19 pandemic on the dairy industry with reference to India

By: Upali Wickramasinghe, G.A., Adeeth Cariappa, A.G.

Write a review Read reviews Take a Quiz Solve Book Puzzle

Improving the resilience of the agricultural sector to external shocks

The impact of the COVID-19 pandemic on the dairy industry with reference to India

By: Upali Wickramasinghe, G.A., Adeeth Cariappa, A.G.

This study provides a quantitative assessment of the Indian dairy sector and aims to determine the underlying factors of the observed price movements. We analyse producer prices over time, differentiated by milk-producing ‘zones,’ and identify the underlying factors that might explain the observed discontinuities or interruptions in producer prices. The findings show no statistically significant change in wholesale milk prices immediately after the sudden lockdown was imposed in the five milk zones. However, retail prices increased in the East zone, while dairy product sales plummeted in all milk production zones. The study found disruption in milk marketing channels, logistics and transportation in the East milk zone, where the cooperative institutional structure is less widespread and active than in other zones. The East zone also has a thinly spread dairy infrastructure such as cold chains, exposing producers to market vagaries. The analysis confirms that the decision of the dairy cooperatives to continue to pay milk producers even when sales plummeted played a critical role in strengthening the resilience of India’s dairy sector during the COVID-19 pandemic. The findings show that building strong institutional infrastructure such as dairy cooperatives is necessary but insufficient for sustaining market resilience. Dairy processors need resources for assuming higher risks while relaxing certain regulations such as labour movements and enhancing access to essential inputs for maintaining production. It is crucial to provide government assistance for those who fail to use market channels for reasons beyond their control.

Average ratings

N/A

5

0%

4

0%

3

0%

2

0%

1

0%

Solve jigsaw puzzle

Age

Page Count

50

Publisher

Food & Agriculture Org.

Published Date

ISBN 10

9251382646

ISBN 13

9789251382646