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Sunday, December 5th, 2021

CII urges stakeholders to reach an amicable solution to end the ongoing protests

CII urges stakeholders to reach an amicable solution to end the ongoing protests, in the interest of industry and economy

INVC NEWS
New Delhi, 

Expressing deep concern over the state of Punjab’s Economy and Industry in the wake of ongoing economic & rail blockade because of agitation by Farmer organisations, CII has issued a fervent appeal to both the Central and State Governments and also the Farmer organisations to come together and find an amicable solution to end this crisis.

 

The industry in Punjab, already reeling under Covid disruption, has estimated losses in thousands of crores as train services remain suspended. The ongoing agitation by farmers has led to supply chain disruptions, which will impact the recovery from the current economic contraction due to COVID-19.

 

Mr Bhavdeep Sardana, Vice Chairman, CII Punjab, said, “The exporters usually receive their payments from customers after they send them bills of landing, which is possible only once the container is loaded in a vessel. Further, continuing this crisis would mean the closure of industries, ruin of investment, decrease in jobs and capital from Punjab that the state can’t afford at this stage. It is difficult to estimate the production loss, but all of this will have a ripple effect.”

 

Mr Sardana added that 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.

 

Mr Gurmeet Singh Bhatia, Managing Director, Ajooni Biotech Ltd, said, “At a time when the economy is upended and lives and livelihoods are affected, this current impasse will add further distress. MSMEs are bearing an extra cost of 20% on account of freight by road transport, which is adversely impacting finished goods cost. New orders are decreasing drastically and even affecting the seasonal textile industry very badly.

 

"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.

 

Industrialists believe that the current crisis has adversely impacted the working capital and liquidity in the market.

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