‘Govt must reduce GST on ghee from 12% to 5% for better sales’

INDUSTRY & LOCKDOWN

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EVEN though dairy business falls under essential services and supplies of dairy products were never curtailed during the lockdown period, those into this business say they too have been partly affected. In an interview with Deepkamal Kaur, Ajit Singh, owner of popular dairy company Metro Milk Pvt Ltd, says his business is dependent on hotels. These days hotels are closed, so there is a sharp dip in the sale of our products. Excerpts:

How is your business doing post lockdown?

Even though dairy production and supplies falls under essential services and we were allowed to carry out business throughout the lockdown period, still we feel our business has come down to 50 per cent of what we were doing earlier.

We have employed 150 labourers and been providing lodging facility to nearly 90 per cent of them. Since the day the curfew was imposed on March 23, I have been providing meals, tea and refreshment to my labourers. I had hired a cook for them who too stays with us. —Ajit Singh, Owner of metro milk private Ltd

Why are you seeing a dip in the sale of dairy products?

A: Since 80 per cent of our business is related to selling curd that too in commercial matka packings for hotels and restaurants, our market has fallen. Our commercial packing is from 5 kg to 15 kg, which has had maximum sales. Since restaurant and hotel business has fallen, our business too has been affected. Since we are also into making dry milk powder, we are using our surplus milk for the purpose which we can be preserved and used later.

What is your product range and how has it changed during the lockdown period?

We are selling milk pouches, curd matkas and ghee. We are in the process of setting up a plant for the manufacturing of paneer. Our product which has seen a surge in demand during the lockdown period has been our special ultra heat temperature (UHT) milk pouches with a 90-day shelf life. The price of this milk pouch is only slightly higher than the normal milk pouch (Rs 28 for half litre and Rs 56 for 1 litre pouches) and people preferred it since they did not want to go out daily to fetch milk and risk their lives. Many families bought these milk packets and stored them for weeks, opening and using them as and when required.

When did you start your business and how did it evolve?

We are into the business of pasteurised milk packets since 1993. We have our plant in Surgical Complex. Our business saw many ups and downs till 2009. After that as we introduced our small curd matkas and then commercial curd packings which were liked very much in the market. People found our curd so tasty that many of them told me that their children only preferred our company’s curd.

Where are you procuring milk from? How are you ensuring safety?

We are procuring milk largely from 8,000 farmers spread across Moga, Tarn Taran, Amritsar, Gurdaspur and Sangrur. On an average, we are procuring 60,000 litres of milk daily. We are not procuring milk from Jalandhar-based dairy farmers as milk is already in short supply here as compared to the overall demand. We have put up computerised testing plants for milk in every collection centre of these districts. All our vehicles are sanitised repeatedly.

Where are your supplies going? Were they affected during the lockdown days?

We supply our products in Jalandhar, Pathankot, Ludhiana, Delhi, J&K, Hamirpur and Dharamsala. No, we faced no problem. The administration ensured that there was no problem in supplying milk and dairy products anywhere in the region.

How many labourers have you engaged and how are you keeping them safe?

We have employed 150 labourers and been providing lodging facility to nearly 90 per cent of them. Since the day the curfew was imposed on March 23, I have been providing meals, tea and refreshment to my labourers. I had hired a cook for them who too stays with us.

What is your message for the people?

My message to them is to work hard and do not get scared at any time. When my labourers, dealers and dairy farmers were scared of continuing supplies, I remained in touch with everyone asking them not to fall weak and stay back at home. I myself worked harder and made everyone do a little more effort and told everyone to continue to strive. This has paid.

What do you expect from the government?

We have been pressing for reducing GST on ghee. While it is 12 per cent at the moment, we want it to be slashed to 5 per cent for increasing sales and income of those into this business. This will also help us pay remunerative rates to dairy farmers.