Due to ongoing Farmers’ agitation there are blockades in different national highways connecting to Punjab, Haryana to rest of India. As a consequence, the supply of Plywoods, Decorative Laminates and other wood panel products are getting delayed and disrupted.
According to reports, the transporters have started charging higher price for lorry’s due to increased transit time while passing from Punjab and Haryana. It is reported that some transporters are booking the materials but they are taking extra money for this because they have to take longer route to reach their destination. Yamunanagar based Plywood Industry express that the regular supply of materials is not smooth as before and uncertainty on arrival is prevailing. Hence, they are advising to dispatch urgent materials due to higher transportation cost.
Haryana and Punjab are vital supplier for Plywood and doors to India market, contributing to around 45% market share, but ongoing protest are disturbing the supply flow. Federation of Indian Chambers of Commerce and Industry (FICCI)- Confederation of Micro, Small and Medium Enterprises (CMSME) raised concern over the economical condition of the Industries.
President of FICCI-CMSME and Founder and CEO R Narayan expressed concern as these could impinge on the economic recovery process currently underway. As a result of the agitation and related blockades, the overall cost and time involved due to the detours and longer routes are impacting small and medium industries, by not able to maintain their supply chain operations in a normal manner. Even the movement of workers and visitor’s sentiment has also been hindered.
Industry body ASSOCHAM estimates “A daily loss of Rs. 3,000-Rs 3,500 crore is resulting in the economies of the region from the value chain and transport disruption because of the protests”. Assocham President Niranjan Hiranandani said, “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.