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The Industry Chamber Assocham says that the country is losing about 3500 crore rupees every day due to the farmer movement. This loss is happening in the form of increasing logistics costs, lack of labor, lack of many services like tourism etc.
Another Chamber of Industry Confederation of Indian Industries (CII) also says that the returning economy could suffer a lot from the peasant movement.
The Associated Chambers of Commerce and Industry (Assocham) has demanded the government and farmers to find a way to overcome this impasse. Significantly, farmers have been agitating on the borders of the capital Delhi for about 20 days to demand the abolition of new agricultural laws.
What difference does the movement make
Assocham says that due to the disruption of several highways, other alternative routes are being adopted for the movement of goods and this can increase the logistics cost by 8 to 10 per cent. Due to this, the prices of daily consumption may increase further.
Damage to many types of industry
Assocham claims that the farmer movement is proving to be extensively harmful for the interconnected economic sectors like Punjab, Haryana, Himachal Pradesh.
Talking to India Today-Aaj Tak, a senior member of ASSOCHAM said, ‘These states are also the hub of many major industries like Food Pro Chessing, Cotton Textile, Automobile, Farm Machinery, IT besides Agriculture and Forestry. Service sectors like tourism, trading, transport and hospitality are also very strong in these states. But all these activities are suffering a lot due to protests and road jams.
18 lakh crore economy
Assocham President Dr Niranjan Hiranandani said, ‘The combined economy of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir is around Rs 18 lakh crore. The economic activities of these states have come to a standstill due to the movement of farmers and the road, toll plazas, railways. Textiles, auto components, bicycles, sports goods and the industry, which cater mainly to the export market, are not able to fulfill their orders. This is hurting our confidence in global buyers.
Shocking economy returning to track
On the other hand, another industry chamber, CII also says that the agitation of farmers will harm the economy in the next days and the improvement that was taking place in the economy falling from Kovid may have affected it. CII says that there is now a lot of pressure on the already disrupted supply chain, while it was starting to improve after the lockdown.
Vehicles taking much time
CII says that it is now taking 50 percent more time to reach goods going to Punjab, Haryana, Rajasthan and Delhi-NCR. Similarly, traffic vehicles coming from Haryana, Uttarakhand and Punjab to Delhi are being forced to travel 50 percent more distance.
8 to 10 percent cost will increase
Nikhil Sahni of CII says that because of this the logistics cost can increase by 8 to 10 percent. Apart from this, the industrial areas around Delhi are facing shortage of laborers, as it is difficult for the laborers from the nearby towns to reach the factories.
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