◊ By Pure & Eco India

The farmers’ agitation and consequent blockades in various parts of Northern India are a matter of concern as these could impinge on the economic recovery process currently underway. As a consequence of the agitation and related blockades, freight movement has been impacted 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.

R Narayan, President, FICCI-CMSME and Founder & CEO, Power2SME, says that small and medium industries are deeply impacted as a disruption in their supply chains is making it difficult for them to maintain and continue operations as per usual.

Besides supply of raw materials and dispatch of finished goods, movement of workers has also been hindered. As a national representative body of MSMEs, FICCI CMSME urges that an amicable solution to the current impasse be found at the earliest through discussions with all stakeholders.

The agitation and blockades should end immediately in the interest of the economy and nation, and the issues must be resolved at the earliest.

Feedback received by FICCI CMSME from its constituents indicates 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 disruption, with trucks being stranded at different locations.

An escalation of transportation costs of 8-12% has been reported by industrial units. Many of the units 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, notes Narayan.

With movement of trucks being restricted, supplies of agricultural products such as fruits and vegetables have also been impacted and inflationary pressures will build up in the Delhi NCR region in the days ahead.

As per estimates, economies from the Northern region may be losing Rs 3,000 crore daily and unless the situation is addressed soon, these losses will mount.

Another major worry is the possible spike in COVID cases that may result, given the large gatherings that have started to build up around Delhi NCR and this would have its own economic repercussions.