Some food companies such as Parle Products, ITC, and Adani Wilmar have said they will not raise the cost of their products even as their profits take a hit during the coronavirus outbreak, according to a report by The Economic Times.
Food manufacturers are facing increasing cost pressure from disruptions in both production and supply due to the nationwide lockdown. Companies are permitted to supply essential items only during this period.
Moneycontrol could not independently verify the story.
Authorities had initially restricted the movement of trucks and personnel after the lockdown began on March 25.
“We expect operations to be back on track in the next 5-7 days in terms of the supply chain,” Mayank Shah, category head at Parle Products told The Economic Times.
“At this point, we are focused on making and delivering products, and (there is) absolutely no focus on profitability,” Shah added.
ITC, too, said it will not raise the cost of essential items. The company said it is continuing manufacturing and distribution with limited staff.
"While we have progressively obtained permissions in some states, availability of trucks continues to be the biggest challenge at the moment,” an ITC spokesperson told the publication.
Angshu Mallick, Deputy CEO, Adani Wilmar said there is a shortage of truck drivers and factory workers.
“We have also seen 50 percent rise in freight rates and significant pressure from currency devaluation, too,” Mallick told the paper.
