Excerpt from the Director's Report Dec-2025
"The imposition of an 18% GST on packaged milk continues to pose a significant market risk, impacting consumer purchasing power and channeling demand toward the informal, unregulated sector, which in turn compresses the formal industry’s volume and growth potential. Despite easing overall inflation, high production costs, and potential global commodity price spikes & supply chain related challenges due to geopolitical instability, remain a key challenge for maintaining healthy operating margins. The sector continues to grapple with fragmented supply chains, low milk yields from local breeds, and inadequate cold chain infrastructure. Climate and environmental risks due to unforeseen weather events (floods, droughts) linked to climate change present a physical risk to livestock health, milk yield, and supply chain stability."
Fauji Foods Directors Report Dec-2025
