Businessmen across sectors are feeling the pinch of the transporters' strike, which entered the sixth day on Wednesday. They are suffering business losses as their inventories are shrinking, with fresh supply of raw material as well as dispatch of finished material coming to a grinding halt.
Exporters fear defaulting on orders as goods may not be dispatched on time. Local business leaders say that generally inventory stock caters to requirement for about a week and if the strike is prolonged, then they will be forced to stop production.
Players in sectors like chemicals, dyestuffs and textile, which are either witnessing a revival after a prolonged slowdown or hoping for a revival, say the strike has come at a time when capacity utilisation was increasing. But, the strike has slowed down production.
Gujarat Chamber of Commerce and Industry (GCCI) has written letters to central Finance Minister Piyush Goyal, central Transport Minister Nitin Gadkari to intervene and figure out a way to end the strike. "We are getting reports from a number of sectors including those supplying raw materials, manufacturers and dispatching of finished goods, taking a severe hit because of the strike. It will be difficult for us to honour our export contracts, if the strike persists," said Jaimin Vasa, president of GCCI.
Meanwhile, transporters said that their strike is ongoing. "Anyway, we were suffering losses because of rising cost of inputs. In that case, going off the road in not a bad bargain. The sectoral bottlenecks have an impact on all the sectors of the economy," said Nimish Patel, national chairman of GST Committee of All India Motor Transport Congress (AIMTC), which is spearheading the strike. Patel said that it is for the first time in his career spanning 35 years in the transport sector that truckers are voluntarily joining the strike.
DYESTUFF SECTOR
We have suffered an estimated loss of Rs 150 crore. Before the strike, our units were working at 70-75% of installed capacity. Our production has been reduced to 25% now. It is after a prolonged slowdown that the sector is witnessing revival. Now, the strike by transporters has again derailed business.
Yogesh Parikh, president, Guj Dyestuffs Manufacturers Asso
TEXTILE
Grey fabric, coal, colours and other chemicals, parts of machinery — we generally have an inventory to last a week. The inventory is depleting fast. We can hold for another three days. We are elated with relaxation in GST and are expecting a revival of business during festive season, but are now facing a strike by transporters.
Naresh Sharma, president, Ahd Textile Processors Association
AGRI PRODUCTS
We have asked farmers not to bring their produce to APMC to sell as we have not been able to dispose the stock we have bought recently. The strike by transporters has resulted in huge stockpiles at our storages. Since, these are not disposed, we cannot buy from farmers.
Jayanti Dhol, president of Gondal APMC
PRACTICAL ISSUES
They are suffering business losses as their inventories are shrinking, with fresh supply of raw material as well as dispatch of finished material coming to a grinding halt
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