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Home » General, Official News

IOK incurs Rs 3900 crore losses in 39 days of lockdown: KCCI

September 13, 2019

Srinagar, September 13, 2019 (PPI-OT): In occupied Kashmir, the Kashmir Chamber of Commerce and Industries (KCCI) has estimated the business losses at whopping Rs 3900 crores in the last 39 days of lockdown. The KCCI President, Sheikh Ashiq Ahmad, in a media interview in Srinagar said, on an average Kashmir loses at least Rs 100-120 crores daily due to the lockdown. He said, tourism industry, which is worth Rs 4000-5000 crores and handicrafts that yields Rs 1500-2000 crores annually, are the worst hit. He said, it is not just this year but the aftershocks of this situation will be felt in coming years as well.

The snapping of cellular communication and internet complicated the situation, which determined functioning of most of the businesses particularly information technology, courier services, tourism and some of the traditional businesses in the valley.

Tanveer Ahmad, who owns a travel agency in Sonawar, said that losses of tour operators, hoteliers and houseboat owners could increase as gag on internet continues in the valley. “Our business is completely dependent on internet. If this internet gag continues, our losses may go up. For instance if I incurred Rs 20 lakh loss this month, it may cross Rs 50 lakh in another month,” he pointed out.

Empty shikaras, vacant houseboats and deserted hotels presents a grim picture of the tourism sector. Hundreds of the youth have lost their jobs so far as majority of the hotels in the valley have downed their shutters in absence of tourists.

Shikaras, which would witness a hustle bustle in autumn, now ferry vegetables from the inner parts of Dal to Boulevard. “Just some 40 days before I was earning Rs 2000 to 4000 daily. Now I am earning just Rs 200. Nobody was prepared for this situation,” said Shakeel Ahmad, a shikarawala.

Horticulture sector, the biggest economy and employment generating sector of Kashmir, too is in the red. “We have no contact with growers and outside dealers for almost a month now. A box of babgosha variety of pears, which last year cost Rs 700 to Rs 800, is sold at Rs 150 to Rs 400. The growers are unable to negotiate the rates with prospective buyers as there is no phone connectivity. We are suffering huge losses,” said Fayaz Ahmad, an apple grower.

He said, harvest of delicious variety of apples has begun from September 10 and the communication blockade is already making things worse for the farmers who are unable to contact dealers in New Delhi and other states of India. “No trucker is ready to ferry the product to other markets of Mumbai, Kolkatta, Chennai and Goa,” he said.

“Before the current situation unfolded we had fixed Rs 27.40 as transportation charges for each fruit box from Srinagar to New Delhi and Rs 65 per box from Srinagar to Mumbai. This time, however, rates have gone through the roof with truckers charging Rs 80 per box from Srinagar to Delhi and Rs 110 from Srinagar to Mumbai”, said a dealer at Parimpora Fruit Mandi.

An official from the Transport Department said that at least 6,000 commercial vehicles had not plied on roads for the last 39 days. “Not a single commercial vehicle has plied from last 39 days in Srinagar and other districts. Majority of these transporters bought vehicles after lending heavy amount from banks. This sector is reporting heavy losses,” he said.

Traditional handicrafts including pashmina and carpet are also witnessing slump with no fresh orders coming from outside dealers in view of the communication gag. “I have almost seven carpets ready but there are no buyers because internet and mobile phone services are shut. We lost contact with our dealers and in turn suffered heavy losses,” said Basheer Ahmad, a carpet dealer from Pattan.

There are also reports of lay-offs in courier and other e-commerce companies in occupied Kashmir. “There are around 3,000 youth working as courier boys in the city alone. Most of them have lost their jobs,” said Adil Ahmad, a courier boy.

For more information, contact:
Kashmir Media Service
Phone: +92-51-4435548, +92-51-4435549
Fax: +92-51-4861736
Email: info@kmsnews.org
Website: www.kmsnews.org

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