Dairy firms hope for an improvement in margins in September quarter

Overall situation is likely to improve with partial opening up of hotels, restaurants and catering services

Profit margins of dairy companies are expected to increase in the September quarter after a sharp contraction in the March and June quarters because of demand destruction following the Covid-19 outbreak.

Dairy companies reported a sharp contraction in their profit margins during the March quarter because of the rapid spread of coronavirus in India. Consumers were scared to pick up value-added dairy products to avoid coronavirus infection.

 “Sales of all value-added products, including skimmed milk powder (SMP), cheese, paneer, and ghee, were badly affected during the March quarter because of uncertain market condition. Sales of these products during the June quarter dipped