ASSOCHAM has urged government and farmers’ organisations to resolve the conflict over new agricultural laws, as the on-going protests are a big blow to interconnected economies.
ASSOCHAM said the on-going protests are dealing a big blow to the interconnected economies of the region, including Punjab, Haryana and Himachal Pradesh. A daily loss of Rs 3,000-3500 crore is resulting in the economies of the region from the value chain and transport disruption because of the protests, according to ASSOCHAM rough estimates.
”The size of the combined economies of Punjab, Haryana, Himachal Pradesh and J&K is about Rs 18 lakh crore. With the on-going farmers’ agitation and blockade of roads, toll plazas and railways, the economic activities have come to a halt. Industries such as textiles, auto components, bicycles, sports goods which cater significantly to the export markets would not be able to fulfil their orders, ahead of Christmas, harming our goodwill amongst the global buyers,” ASSOCHAM President, Niranjan Hiranandani said.
ASSOCHAM Secretary General Deepak Sood said that “Industries, farmers and also the consumers are paying a heavy price for the serious disruption in the supply chain. Ironically, these disruptions came about when the economy had started unlocking from the COVID-19 impact.”
Meanwhile industry body Confederation of Indian Industry (CII) has also said that the on-going agitation by farmers has led to supply chain disruptions, which will impact the recovery from the current economic contraction due to COVID-19,
“Given the challenge to get the economy back on the growth trajectory, Confederation of Indian Industry urges all the stakeholders to urgently seek ways to end the on-going protests and reach an amicable solution, in the interest of industry and economy,” CII said.
“The already broken supply-chain which was recovering post the pandemic-induced lockdown has come under severe stress,” CII said in a statement.
Nikhil Sawhney, chairman, CII Northern Region said that “the on-going farm agitation requires an immediate amicable solution as it is impacting not only the economic growth but also putting a huge dent to the supply chain which is affecting the large and small industries alike.”
“Tourism, a major revenue and livelihood source in these states, is likely to get adversely impacted at a crucial time when the sector is looking forward to regaining some momentum following the unlocking of the economy,” said CII.
Though the economies of Punjab, Haryana and Himachal Pradesh are predominantly based on agriculture and horticulture, several industries like food processing, cotton textiles, automobile, farm machinery, IT have become their lifeline.
Besides, vibrant services sectors including tourism, trading, transport and hospitality, have added to the strength of the regions, known for their enterprising farmers, entrepreneurs and innovators.
It is to be noted that Farmers have been protesting on different borders of the national capital since November 26 against the three newly enacted farm laws.
(With Inputs from ANI)