NEW DELHI: The week-long farmers’ agitation that has caused supply chain and logistics disruption in several parts of the country is resulting in a daily loss of Rs 3,000-3500 crore, according to estimates from Assocham.
The ongoing standoff between the Centre and farm bodies, if not resolved soon, may impinge on the economy, which is already struggling to get on a growth trajectory amid the Covid-19 pandemic.
“The protests are dealing a big blow to the interconnected economies of the regions including Punjab, Haryana and Himachal Pradesh,” said Assocham General Secretary Deepak Sood.
“The size of the combined economies of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir are Rs 18 lakh crore. With the ongoing farmers agitation and blockade, 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 fulfill their orders, ahead of Christmas, harming our goodwill amongst the global buyers,” added Niranjan Hiranandan, president, Assocham.
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If the economy needs to double down on growth, it is possible only with a conducive environment for industries. Industry body CII also noted that the blockade of highways due to the protests have led to 50 per cent more time and distance for movement of goods and about 8-10 per cent increase in logistics costs.
The apex industry body said around two-thirds of consignments in transit are taking extra time to reach destinations in Punjab, Haryana, Rajasthan and Delhi-NCR. While industry leaders have red flagged the move, the government has maintained that the protests have only minimally impacted the economy.
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