Truckers strike is badly hitting the operations of the micro, small and medium enterprises (MSMEs) across south India, Karnataka Small Scale Industries Association (KASSIA) has said.
The truck owners in south India are on strike since last eigth days to protest mainly the proposed 50 per cent hike in the third party insurance premium.
Industry body KASSIA said it is seriously concerned with the indefinite strike being carried out by the truck owners in Southern India including Karnataka.
“This is a serious worry as small and micro enterprises will be hit hard due to the very nature of their operations,” it said.
Small Industries tend to produce and supply goods in short spans of time and depend on regular supply of raw materials for production at short intervals and also have to transport finished products quickly, some of which will involve interstate movement. They also lack capacity to hold inventory, so the strike will place their operation in complete jeopardy.
“We have information that the strike is already disrupting SME operation in the state. As lakhs of units are involved, it is feared that the strike will result in heavy losses and even closure of units,” KASSIA said.
The industry body for MSMEs has urged both the Central and State Governments to immediately take necessary steps to resolve the dispute with a view to ensuring the strike is immediately called off.
Meanwhile, talking to KNN, Anil Reddy Vennam, Immediate Past President, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) explained the gravity of the situation. “The basic structure of MSMEs is that they thrive on inputs they buy on weekly basis due to low purchasing power. Also since March is the end of financial year, this further limited their raw stock, transport coming to halt is no less than a disaster for the MSMEs,” he said.
Talking about the halted production Reddy said, “Almost all units including my own plastic unit are not producing anymore, our outputs can’t reach the destination, nor can we avail the input supplies.”
He explained that the break in the production cycle due to the strike might have long term impacts as well. “Post Demonetization, we were just getting to settle down, another disruption of the production cycle is a very bad indicator for the industry both now as well as in the long run” Reddy added. (KNN Bureau).
Article Source: “http://knnindia.co.in/news/newsdetails/state/truckers-strike-is-disrupting-msme-operations-industry-bodies”