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regular-article-logo Friday, 04 October 2024
Business cites supply chain disruptions

Industry chambers call for early end to deadlock over farm laws

The Confederation of Indian Industry stated that the protests are disrupting supply chains and affecting the post-Covid economic recovery

Anita Joshua New Delhi Published 16.12.20, 02:07 AM
Farm leader Jagjit Singh Dallewal (centre) at a news conference at the Singhu border near New Delhi on Tuesday

Farm leader Jagjit Singh Dallewal (centre) at a news conference at the Singhu border near New Delhi on Tuesday PTI

Apex industry chambers on Tuesday called for an early end to the deadlock over the new farm laws, stating that the protests are disrupting supply chains and affecting the post-Covid economic recovery.

Attention is being drawn to the wider economic impact at a time the Prime Minister has been trying to project the farmers’ grievances and agitation as an isolated (“Dilli ke aas-paas”) phenomena.

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The Confederation of Indian Industry (CII) estimated that around two-thirds of the consignments in transit are taking 50 per cent extra time to reach destinations in Punjab, Haryana, Rajasthan and the Delhi-National Capital Region.

In addition, freight carriers 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 up to 8 to 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 chamber said.

Nikhil Sawhney, chairman of the CII’s northern region, said in a statement: “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.”

Niranjan Hiranandani, the president of the Associated Chambers of Commerce of India (Assocham), said in a separate statement: “With the ongoing farmers’ agitation and blockade of roads, toll plazas and railways, 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 fulfil their orders ahead of Christmas, harming our goodwill amongst the global buyers.”

Assocham’s estimates have pegged the daily loss because of the disruption in the value chain and transport between Rs 3,000 crore and Rs 3,500 crore.

Indicating that the protests have hit where it hurts (the farmers believe the three laws are aimed at benefiting the corporate sector and not the farming community), the two industry bodies said the agitation was impacting the post-Covid economic recovery.

Assocham also sought to convince the farmers that the industry has a big stake in their welfare and that they can rest assured that any economic proposition from the farm sector would have a bias only in favour of farmers.

The farmers are upset at the constant vilification and infantilisation of the protests through government statements that they are being misled, iterated on Tuesday by Prime Minister Narendra Modi.

The farmer leaders likened the amendments offered by the government to removing two grams of poison each from three tablets of 10 grams poison. “The poison will still kill us,” said farmer leader Inderjit Singh from Haryana.

An elderly woman at the farmers’ protest at the Tikri border near New Delhi  on Tuesday

An elderly woman at the farmers’ protest at the Tikri border near New Delhi on Tuesday Prem Singh

Responding to Modi’s address in Kutch, Yudhvir Singh of one of the Uttar Pradesh-based factions of the Bharatiya Kisan Union said: “The Prime Minister on one hand says this is for farmers but at the Ficci meeting last weekend, he tells industry that ‘I have opened the farming sector for you’.”

Stating that the Prime Minister never found time for farmers in six years — except for two “staged” meetings — Yudhvir Singh said the more the government delays addressing the demands of farmers, the more support the movement will get.

“This is a kisan yagya, and more farmers are joining in. They may not be able to reach here because they are being stopped on the way, but the support is increasing. We are ready to die for the repeal of these laws,” he said, adding that farmers have realised their mistake in voting for Modi.

Yudhvir Singh was equally sharp in responding to allegations of foreign funding that is being levelled against the movement. “Modi got funding from Gujaratis abroad and used it for elections to reach where he is. That is OK. But if our children who are abroad contribute for this, it is wrong. Did we get it from Namaste Trump?’’

The farmers have decided to block the Chilla border on the Delhi-Noida link road again from Wednesday.

The Sanyukta Kisan Morcha has urged all farmers to organise memorial meetings in villages across the country on Sunday as a mark of respect to those who have died in the protest. Until Tuesday, 13 farmers have died participating in the protests.

Earlier in the day, addressing a separate news conference, All India Kisan Sabha general secretary Hannan Mollah — who has been attending the meetings with the government as a member of the umbrella organisation, the All India Kisan Sangharsh Coordination Committee — said: “This government is only interested in selling everything. Now, only land is left; they want to sell that too in the long run through these laws.”

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