Amidst the slow progress of the monsoon and reports of El Nino, consumer staple companies such as LT Foods, GRM Overseas, and Tirupati Agritrade are adopting strategies to ensure continuous supplies. They are actively increasing their stock levels and advising their distributors to maintain a 25-day inventory. This proactive approach aims to safeguard against any potential disruptions, enabling these companies to meet consumer needs without interruption.
According to industry officials, these companies are also implementing measures to guarantee water availability for their contract farmers in the event of insufficient rainfall. This proactive approach aims to prevent any disruptions in their supply chain.
“We are not sure if the monsoon will be good or not,” said Suraj Agarwal, CEO of Tirupati Agritrade that sells and markets non-basmati rice under the RiceVilla brand.
“We have asked our distributors to keep a stock of 25 days instead of 15 days,” he said. “We are also asking our consumers to buy larger packs of 26 kg of rice instead of 10 kg.”