Serious impact of farmers’ agitation on economy: FICCI – business news

Amid the ongoing farmers’ agitation that resulted in the blockades in different borders of the national capital, Federation of Indian Chambers of Commerce and Industry (FICCI)- Confederation of Micro, Small and Medium Enterprises (CMSME) raised concern over the economical condition of the Industries.

President of FICCI-CMSME and Founder and CEO R Narayan said that the ongoing farmers’ agitation that results in the blockades in different parts of Northern India is a matter of concern as these could impinge on the economic recovery process currently underway. As a result of the agitation and related blockades, freight movement has been impacted both in terms of time taken for the consignments to reach their destination and the overall cost involved due to the detours and longer routes required to be taken.

He further said that small and medium industries are deeply impacted as a disruption in their supply chains making it difficult for them to maintain and continue operations in a normal manner. Besides the supply of raw materials and dispatch of finished goods, movement of workers has also been hindered.

Urging that the issue of the blockade should be solved as soon as possible Narayan said that an amicable solution to the current impasse has to be found at the earliest through discussions with all stakeholders. The agitation and blockades should end immediately in the greater interest of the economy.

Narayan further stated that as per the feedback received by FICCI-CMSME from its various constituents shows that SME units in Punjab, Haryana, Himachal Pradesh, Rajasthan, Delhi NCR, Uttar Pradesh, and Uttarakhand have been at the receiving end as the supply chains for their raw materials have seen a disruption with trucks being stranded at different locations.

“Sectors such as textile and apparel, sports goods, home appliances, home furnishings, plastic products etc. were looking forward to a jump in sales with Christmas and New Year-round the corner, but with the protests and blockages, sales would again come under pressure,” he said.

“The tourism sector also has come under pressure as people from the NCR region who were planning to take short breaks at destinations in Rajasthan have been forced to review their plans. Hotels in Rajasthan have reported cancellations of bookings from clients citing the ongoing protests,” he said.

“As per estimates, these economies from the Northern region may be losing around Rs 3,000 crore daily and unless the situation is addressed soon, these losses may only mount along with a possible spike in Covid-19 cases that due to the large gatherings and this would have its own economic costs,” he said.

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