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.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
“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.