InvestorQ : How much losses have resulted to the businesses from the farmers agitation?
sarah Leo made post

How much losses have resulted to the businesses from the farmers agitation?

Rashi Mehra answered.
12 months ago

Farmers from the states of Punjab and Haryana have continued to agitate for over a month on the outskirts of Delhi. There are numbers put out by the Punjab, Haryana, Delhi Chamber of Commerce and Industry or PHDCCI that the economic loss in the month of December 2020 alone would be to the tune of Rs.70,000 crore. Here is why.

These losses largely arise due to supply chain disruptions across Punjab, Haryana and the borders of Delhi. These states are closely connected for agricultural and industrial movement, to and fro. This has also impacted a number of downstream industries and that impact has not yet been fully estimated by the PHDCCI.

Over the last one month, the talks between the government and the farmers have been deadlocked over the contentious issue of repeal of 3 farm laws and legal guarantee for MSP. While the government is open for talks with farmers, it is not willing to accept that the 3 farm laws be repealed as a necessary pre-condition for the talks. That is where it is stuck.

This strike by the farmers is estimated to have badly hit the 25 lakh MSMEs in Punjab and Haryana that account for GSDP of Rs.400,000 crore. The overall GDP of Punjab and Haryana put together is around Rs.14,00,000 crore and it is clear that MSMEs account for a lion’s share of the goods and services produced in these northern states.