Heya and thanks for all the help/tips. I was able to reduce the packet drops by increasing the UDP buffer size. I still need to optimize the UDP buffer based on the message size and frequency etc, but atleast it works. After creating the socket, I used setsockopt() to increase the socket buffer size using the following line

setsockopt($MySocket,SOL_SOCKET,SO_RCVBUF,100000);
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To see your current socket buffer size you can use the following code

my $packed = getsockopt($MySocket,SOL_SOCKET,SO_RCVBUF);

my $mybuffer = unpack("I", $packed);

print "\n Buffer size : $mybuffer \n";
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Again, thanks for all the input