Farmers protest effecting Economy's

The Associated Chambers of Commerce 

and Industry of India (ASSOCHAM) has urged the government and farmers' organisations to resolve the impasse at the new farm laws. It has said that the economies of Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir are bearing losses to the tune of Rs 3,500 crore every day. "The ongoing protests are dealing a big blow to the interconnected economies of the region, including Punjab, Haryana and Himachal Pradesh," it said

While the government maintained that the farmer protests have only minimally impacted the economy, industry leaders on Monday said the current agitation by farmers in many parts of India has led to disruption in supply chains and logistics. They urged the government and protesting farmers to find an amicable solution for the sake of the economy, which is already struggling to get on a growth trajectory amid the Covid-19 pandemic

The protest 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, said the Confederation of Indian Industry (CII) in a statement

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 a smaller measure across many other States. The already broken supply chain which was recovering post the lockdown has come under severe stress

Around two-third of the consignments in transit are taking 50 per cent extra time to reach their destination in States of Punjab, Haryana, Rajasthan and Delhi-NCR. In addition, the transport vehicles are forced to travel up to 50 per cent longer to reach Delhi from the warehouses in Haryana, Uttarakhand and Punjab. This may push logistics cost by upto 8- 10 per cent

Many companies in the industrial belt surrounding Delhi are facing labour shortages as people struggle to reach production facilities from neighbouring towns

“The ongoing 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,” said Nikhil Sawhney, Chairman, CII Northern Region, said in the statement

The effect of the agitation is more acute for industries in the hilly regions of Himachal Pradesh, Uttarakhand and Jammu and Kashmir, which are dependent on goods transported by road

There is also uncertainty around the transportation of farm products to the major markets of Delhi-NCR, and it could lead to significant losses to the farm sector in these States. 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