Industry hit by rising freight, material costs

Tribune News Service

Ludhiana, May 8

There is an acute shortage of labour in the local industry these days. Major reasons cited for this shortage include the harvesting season in the labourers’ home states and Lok Sabha elections. Consequently, the labour is not returning to the industrial hub and factories are working with just 50-60 per cent workforce.

Besides, due to the unresolved farmers’ agitation, the freight charges have been increased manifold by the transporters. “Raw material or stocks, which would reach us within five hours, are now reaching after a wait of over 10 hours as the trucks are diverted to other routes to avoid the barriers where farmers are sitting in protest. But we are paying heavy price because of this. The freights have almost doubled in the last 20-25 days and we are feeling the pinch more so for the production is hit and the industry is being affected by a recession-life fiscal atmosphere,” said Avtar Singh Bhoga, senior vice-president, UCPMA.

Another industrialist running a garment unit at Focal Point, Vikram Kanwar, said there was acute shortage of labour, who are not planning to return sooner. “Harvesting is on and now, there is the added pressure of the elections. The workers are saying they will return in the second week of June, but by then, it would be too long and production will have been hit badly,” said the industrialist.

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