‘We want govt to waive interest on loans for at least 6 months’

INDUSTRY & LOCKDOWN

The cattle feed industry, which suffered revenue losses due to the lockdown, is still counting losses even after the lockdown. There are no big orders for milk, hence dairy farmers are not using cattle feed. As a result, there is low demand for cattle feed. Moreover, the government has not given any financial support to the industry and small-scale units are the worst sufferers. In an interview with Sanjiv Bakshi, Rajesh Arora, owner of Sri Krishna Feed Industry (at Saila Khurd in Hoshiarpur) producing Nand brand cattle feed, said it seems that this year is going to be dull for the cattle feed industry and they want the government to support them by ensuring better price for milk and stopping the sale of spurious milk powder. Excerpts:

How has the lockdown affected the business?

The cattle feed industry has been badly affected by the lockdown. As large gatherings, parties and functions are banned, there is little demand for milk. Hence, most dairy farmers do not want to spend on cattle feed as they do not want to have more milk. We have been facing tough times for the past four months and the situation is not going to be normal in the coming days.

The cattle feed industry has been badly affected by the lockdown. As large gatherings, and functions are banned, there is little demand for milk. Hence, most dairy farmers do not want to spend on cattle feed as they do not want to have more milk. We have been facing tough times for the past four months — Rajesh Arora, owner, Sri Krishna Feed Industry

What are the challenges as the industry has resumed functioning?

Our sales are supposed to pick up the pace in summers when demand for milk increases but production decreases, so milk producers resort to cattle feed for more milk production. But this year, from the outset of the summer season, the curfew and the lockdown were imposed and there were restrictions on the functioning of the industry. This year, our precious production months have been wasted due to the curfew and the lockdown. We have resumed operations, but the problem of shortage of labourers is there. But the biggest problem is low demand.

What do you expect in the future?

These days are stressful and it is feared that the bad phase may continue for months hence. For us, the situation is such that we are considering that this year is over for us as far as the business is concerned. No respite is visible in the coming months, though the winter four to five months apart. In winter, milk production increases automatically and the demand for cattle feed is not there in winter months. So I do not think things are going to improve until next year.

What kind of support is there for you by the government?

There is no support either from the state government or the Central Government. The moratorium by the Central Government has proved to be a hoax. Last month, the bank deducted three months’ interest on loans and credit limits in three days during the last week. It means that we have lost a major part of the amount which we were supposed to use to sustain in the coming months. The state government has not even provided any relief in electricity charges or fixed charges. We have to pay the fixed charges for the load which we have not used as the industry had not been functioning for the past months.

What kind of support do you expect from the government?

The cattle feed industry is completely dependent on the sale of milk. The demand for milk is low. Dairy farmers are getting low prices which are not sufficient to bring them on a par with no-profit-no-loss. Besides, the sale of fake milk is adding to the problem. So, the government should take steps to ensure a better price of milk for dairy farmers and stop the sale of fake milk in the state so that demand can increase. We want the government to provide us some relief in fixed charges of electricity and to waive interest on credit limits and loans for at least six months.