Ephemeral spike in demand in India’s food sector owing to Covid-19: TPCI
Press Release:
Ephemeral spike in demand in India’s food sector owing to Covid-19: TPCI
– Essential commodities witnessed more than 100% demand in the month of March 2020
– Confectionaries, sweets, processed food, spices, etc. have seen 15-20% rise
23rd March 2020, New Delhi: Trade Promotion Council of India, which organizes largest food show in South Asia, said today, there is huge surge in the month of March 2020, with respect to the exports of food items amidst the Covid-19 crisis, gripping the world. More than 100% spike in demand has been witnessed in essential commodities such as rice, wheat and pulses. Others food categories like- confectioneries, sweets, organic processed food, spices, etc. have also witnessed 15-20% rise this month.
Speaking on the development Chairman TPCI, Mohit Singla said, “There is huge opportunity amide this Covid-19 crisis for Indian food sector. People eat irrespective of circumstances and recent demand, though a short term phenomenon, offers Indian exporters huge opportunity currently. However, this surge is primarily driven by the fear that there will be shortage of food in the coming months and consumers have started hording essential food commodities. The major destinations where Indian food sector has witnessed demand are US, Europe, Australia, New Zealand, Israel, Palestine, Egypt, etc. The coming few months is crucial for leveraging to the India’s advantages in terms of exports. ”
Chairman TPCI further said, “The surge in food export is not free from challenges, there is shortage of containers, vessels are getting delayed owing to fumigation and complying with the norms of various countries, there are delays in clearances, advisories not to enter particular port and few countries payments are getting delayed (especially cash on delivery mode), etc. Government is doing best possible and easing out the barriers and facilitating smooth trade.”
TPCI members have confirmed that, there is a mad rush to buy groceries, processed food and essential commodities owing to the evolving news that Covid-19 is hitting new geographies with each passing day. Only the pattern of stocking these food items have changed, earlier the distributors where stockpiling, which is now translating to the consumer end.
Organic Tattva, a leading brand of Organic food in India disclosed that there is huge jump in the food items demand from overseas in the month of March 2020. The highest surge has been seen in the in the organic essential commodities and 20% rise in the organic processed food sector from overseas market.
Bhikharam Chandmal, which represents the ready to eat confectioneries said, there has been 10 to 15% surge in overseas demand due to Coronavirus. Another player in the same category, Bikaji, also confirmed the spike to be 10 to 15% however, this surge is owning to the stockpiling and in coming months orders will be hit.
Ramdev Masala a leading spices brand in India also said that this quarter has seen a surge to the tune of 20% however it could not be sustained from the next quarter.
P K Overseas another company has confirmed there is huge demand coming from overseas market especially rice. This has led to the shortening of production, packaging and supply capacities to meet the current demand. Rdr Impex Private Limited one of the commodities supplying company informed that essential commodities like rice demand is up by more than 60% which is witnessing the major upswing.
Chaizup Beverages has said that there is 5-7% increase in the demand of India tea this month due to the Coranavirus ongoing crisis.
Few big brands like Amul has said that buyers are facing the challenge to pay due to unavailability of banking channel. Another brand Dabur International said, all orders are on hold owing to the Covid-19 crisis.
Indian exports are also getting enquires in the fresh/ dehydrated garlic, in the spices category– chilli, ginger and seed spices (cumin, fennel, etc), and sesame seeds/oil, owing to the supply Chain disruption hitting China due to Coronavirus.
Further Singla said, “If we compare the corresponding growth for the month of March 2019 with the same period in March 2018 the growth pattern showed much lesser (viz-a- viz March 2020), despite March 2020 is not yet over. Rice recorded 16.2% growth, Tea 10%, wheat and mesline 17.88%, processed ready to eat, instant food, processed food, confectionaries recorded 9.7% growth and fruits and dry fruits was just 0.01%, in the March 2019.”
For any further information, contact:
Sameer Pushp
DIRECTOR- MEDIA & CORPORATE COMMUNICATIONS
9, 2nd Floor, Scindia House, Connaught Circus,
New Delhi- 110001, India
T: (91) 11 40727281
M: (91) 9811229110
W: www.tpci.in
