Stagnation and steep price drop affect Uthukuli butter and ghee producers

Steep drop in price of butter and stagnation of unsold butter have greatly affected the Uthukuli butter producers. They look forward to the government's assistance to move the produced goods.

Tirupur: Steep drop in price of butter and stagnation of unsold butter have greatly affected the Uthukuli butter producers. They look forward to the government's assistance to move the produced goods.

Uthukuli, a Tirupur suburb, is famous all over India for its butter and ghee products. Nearly five to eight tonnes of butter and related products are produced here each day.



This is then transported to all parts of the country. Also, 30% of the curd needed in Kerala is sent from Uthukuli through trains and lorries.



Due to the COVID-19 lockdown, the butter and ghee produced here have not been able to be transported to the usual places. Sale of these products have been affected locally too due to the closure of shops.



The producers of butter, however, buy milk making immediate payments. Since, the butter business is stagnant now, the manufactures say they take loans to pay for the milk. With more than 50 tonnes of butter stagnating unsold in cold storage facilities, the price of butter has gone down by Rs.70 and is sold at Rs.350 per kilo. This drop has added more to their losses, say the butter producers.

Due to the exemptions provided in the lockdown, butter and ghee are now kept for sale in shops. However, the producers note that it would take three months to clear away the current stock of produced butter. They have therefore requested the government to take action to help them send their products through special trains that are being operated, thereby protecting their business.

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