The CII on Monday mentioned the continued farmers’ protests may lead to about 8-10% increase in logistics costs due to detours with consignments taking 50% longer to attain locations in States like Punjab, Haryana, Rajasthan and Delhi-NCR.
“The agitation by farmers in many parts of India has led to disruption in supply chains and logistics. This 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,” the trade physique mentioned.
“Around two-third consignments in transit are taking 50% extra time to reach destinations in the above States. In addition, the transport vehicles are forced to travel up to 50% longer to reach Delhi from the warehouses in Haryana, Uttarakhand and Punjab. This may push logistics cost by up to 8 to 10%,” it mentioned, including that many firms within the industrial belt surrounding Delhi are dealing with labour shortages as folks battle to attain manufacturing amenities from neighbouring cities.
Nikhil Sawhney, Chairman, CII Northern Region, mentioned, “The 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.”
The impact is extra acute for industries within the hilly areas of Himachal Pradesh, Uttarakhand and Jammu and Kashmir that are depending on items transported by street. There can be uncertainty across the transportation of farm merchandise to the most important markets of Delhi-NCR. It may lead to vital losses to the farm sector in these States.