According to the Confederation Of Indian Industry (CII), the current 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. The farmers’ protest which has intensified over the past couple of weeks has 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. The already broken supply-chain which was recovering post the pandemic induced lockdown has come under severe stress.
Around two-third consignment in transit are taking 50 percent extra time to reach destination in states of Punjab, Haryana, Rajasthan and Delhi-NCR. This may push logistics cost by up-to 8 to 10 percent. Many companies in industrial belt surrounding Delhi are facing labour shortages as people struggle to reach production facilities from neighbouring towns. The effect of the agitation is more acute for industries in hilly regions of Himachal Pradesh, Uttarakhand and Jammu and Kashmir who are dependent on goods transported by road. Given the challenge to get the economy back on the growth trajectory, Confederation of Indian Industry urges all the stakeholders to urgently seek ways to end the ongoing protests and reach an amicable solution, in the interest of industry and economy.