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Snacks and sweets industry suffer loss of Rs 35,000 crore in the current FY21 due to the coronavirus pandemic

An industry official on Monday said that the country’s snacks and sweets industry would suffer an estimated revenue loss of Rs 35,000 crore in the current financial year 21 due to the coronavirus outbreak.

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Experts further said that sweets and snacks manufacturers have cut down the production capacity due to the shortage of laborers amidst the lockdown and the coronavirus related health concerns.

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Feroze H Naqvi, the director of Federation of Sweets and Namkeen Manufacturers said, because of the ill effects of the COVID-19 on the market, it is estimated that the total turnover of sweets and snacks products in the country may drop to Rs 65,000 crore during the current financial year.

He also added that in 2019-20, the yield of the sweets and snacks industry was around Rs 1 trillion. This includes a turnover of Rs 60,000 crore of sweets.

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Naqvi said that the Covid-19 crisis has badly affected the sweets and snacks industry’s business. The business came to a standstill due to the coronavirus outbreak followed by a nationwide lockdown, ruining a large stock of sweets in manufacturing shops. It has also caused huge losses to manufacturers and vendors, he added.

The sale of sweets and snacks has gained some momentum since the month of June after the lockdown was eased. But the indications are not very good an encouraging as the economic crisis induced by the coronavirus has also affected the purchasing power of the common people, Naqvi said.

Naqvi further added that the number of units manufacturing sweets and snacks in organized and unorganized sectors is at over 200,000 but most of the units have reduced their production capacity due to the current market conditions.

Meanwhile, Indore in the country stands the leading snack producer with hundreds of small-scale units.

 

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