In a blow to the financial health of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir, the farmers protest has resulted in daily loss of Rs 3,500 crore. This means these States reported to have incurred over Rs 70,000 crore due to the ongoing protest. A traders body in Delhi has estimated over Rs 5,000 crore loss while the Northern Railway has incurred losses worth roughly Rs 2,000-Rs 2,400 crores due to the ongoing farmers’ protest.
According to top industry and commerce federations, a daily loss of Rs 3,000 crore to 3,500 crore is resulting in economies of the region from the value chain and transport disruption because of protests. They said the detours due to blockades of highways are leading to 50 per cent more time and distance for movement of goods that can lead to 8-10 per cent increase in logistics costs, thus leading to rise in prices of daily items and essentials.
‘’The size of the combined economies of Punjab, Haryana, Himachal Pradesh and J&K is about Rs 18 lakh crore. With the ongoing farmers’ agitation and blockade of roads, toll plazas and railways, the economic activities have come to a halt,” said ASSOCHAM President Niranjan Hiranandan said on Tuesday. Assocham urged the Government and farmers’ organisations to resolve the impasse over the new agri-laws as the disruption caused by farmers’ protests was resulting in a huge daily loss.
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.
While the Confederation of Indian Industry (CII) said the disruption in supply chain and logistics due to the agitation by farmers in many parts of India will have a bearing on the economy over the coming days and may impinge the ongoing recovery from the economic contraction due to Covid-19 pandemic.
The CII said the farmers’ protests, which have intensified over the past couple of weeks, have led to obstruction of traffic and road blockades across multiple checkpoints in the northern states of Delhi-NCR, Punjab, Haryana, Uttar Pradesh and Rajasthan, and in smaller measure, in many other States.
As per the estimates, the impact of the agitation is more acute for industries in hilly regions of Himachal Pradesh, Uttarakhand, and Jammu and Kashmir which are dependent on transport of the goods by road.
There are fears that the uncertainty around the transportation of farm products to the major markets of Delhi-NCR could lead to significant losses to the farm sector in these States.
During winters, tourism sector is a major revenue and livelihood source in these contiguous States. But there is apprehension that the farmers’ protest is likely to adversely impact the sector this winter. The period from December to March is critical due to the vacation period and the snowfall in the mountains.
On the other hand, the Confederation of All India Traders (CAIT) said in the last 20 days, trade and other activities of about Rs 5,000 crore have been affected in Delhi and its surrounding states. According to an estimate, about 30 to 40 percent of the goods coming to Delhi have been affected by the movement of farmers, which is adversely affecting the trade and other activities of Delhi and neighbouring States, the traders’ body stated.