Jaipur dairy lowers price of ghee due to surplus stock

Jaipur: The Jaipur dairy on Thursday lowered the price of ‘Saras ghee’ by Rs 20 per litre, facing a loss of Rs 12 crore on the stock ready for sale. The coronavirus outbreak and the lockdown badly affected the economy of Jaipur dairy, where stock worth around Rs 400 crore is piling up in the absence of buyers.
All hotels, restaurants and temples are shut, due to which the losses kept on mounting and it is estimated that Jaipur dairy will not be able to recover from it in the near future.
Om Prakash Punia, chairman of Jaipur dairy says, “Due to lockdown, we couldn’t find any distributors. The supply chain demand was broken because of which we had to lower the prices. We faced losses but we have no choice. If all the products in the market are getting cheaper, we have to follow it. In near future if the stock is not disposed off by August, Jaipur dairy union will be facing really difficult times soon. ”
According of Jaipur dairy officials, stock of around 6,000 ton ghee and 7,000 ton milk powder is lying in Jaipur dairy’s godown. It is estimated that this year, Jaipur dairy will face around Rs 100 crore loss. Officials are expecting that prices of ghee will be further reduced looking at the market condition.
In the month of May, Tonk dairy tried to find a solution to their piling ghee stock. Dairy administration issued an order of giving ghee instead of money in return for the milk supplied to them. People protested against this move and threatened that they will stop their milk supplies if this order was not taken back. Reluctantly, the dairy had to take back the orders.
According to the new prices, one litre ghee which costs Rs 470, will be sold for Rs 450.