‘Brick-kiln industry might take years to recoup’

INDUSTRY & LOCKDOWN

AFTER the state government allowed the manufacturing of bricks at kilns post lockdown, their expenditure remained the same, but the income has been stalled. The industry that is completely dependent on manual labour will find it difficult to get back on track post the lockdown. In an interview with The Tribune reporter, a former patron of the Brick Kiln Association of Amritsar Rajinder Mohan Singh Chhina, who is also the honorary secretary of the KCGC, discusses the effect of the lockdown on the brick-kilns industry. Excerpts:

How has the Covid-19 lockdown affected the brick-kiln industry?

The brick-kiln owners have lost all of their financial resources as a result of Covid-19 lockdown. With construction work stalled, there was no demand for bricks and the labour migration further added to the woes of the owners as the industry is completely dependent on manual labour and not machine tools.

The brick-kiln industry might take at least two to three years to be back on track as the amount of financial losses incurred by the owners are huge. Banks are not supportive and restructuring of loans will further add to the debt of owners. People who have made huge investments in setting up kilns have already lost all their surplus resources and are looking to just survive post lockdown. —Rajinder Mohan Singh Chhina, former patron of the Brick Kiln Association of Amritsar

How has the manufacturing capacity been hit after the lockdown?

If before the lockdown, we produced one crore bricks in a season, the capacity has sharply declined to just 10 lakh bricks today. Without the required number of labour, we have to make do with the local labour, which limits our output. Also, since most of the brick-kiln owners had to support their units during lockdown, the finances required for increased manufacturing is also not available. Another factor is that there is no demand in market which hits us beyond repair.

What impact have the changed weather conditions had on the industry?

The winter season this year had unpredicted rainfall and all through summers, the rains did not allow the industry to function to its capacity. Running the kilns without labour, with such unpredictable weather pattern and Covid 19 risk has been a very expensive deal for all.

What do you have to say about the future of the industry?

The brick-kiln industry might take at least two to three years to be back on track as the amount of financial losses incurred by the owners are huge. Banks are not supportive and restructuring of loans will further add to the debt of owners. People who have made huge investments in setting up kilns have already lost all their surplus resources and are looking to just survive post lockdown. The situation might only improve with the increase in liquidity among masses as it would boost the construction works that can bring in the demand for bricks.

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