Rohtak, Bahadurgarh industries buckle under rising costs, migration

Inadequate availability of raw materials, rising input costs, labour migration triggered by LPG shortage and declining production continue to severely impact industries in Bahadurgarh (Jhajjar) and Rohtak following the ongoing conflict in West Asia involving the United States, Israel and Iran.

With the conflict persisting for over a month, industrialists are growing increasingly apprehensive about the further deterioration in conditions and are looking towards the government for timely intervention and support to navigate this critical situation.

“Over 40 per cent of factory workers in Bahadurgarh have migrated back to their homes due to the non-availability of LPG, resulting in a sharp decline in production. Most industrialists had taken loans to run their units and are now struggling to repay these amid low output and reduced orders. The government should consider reducing interest rates on these loans, similar to measures taken during the Covid-19 crisis,” said Narendra Chhikara, vice-president of the Bahadurgarh Chamber of Commerce and Industries.

He added that the recent hike in piped natural gas (PNG) prices by a private company in Bahadurgarh had dealt another blow to the local industrialists, already impacted by the West Asia conflict.

“We have written to the Prime Minister, the Union Petroleum Minister and the Haryana Chief Minister seeking urgent intervention, but no relief has been provided yet. The rise in the PNG prices has significantly increased production costs and is forcing the industries to scale down output. The Bahadurgarh administration is also taking up the matter, and we demand an immediate rollback of the price hike,” he added.

Chhikara pointed out that Bahadurgarh, with over 2,500 units linked to the footwear industry, also produced about one crore shoes daily, contributing nearly 60 per cent of India’s non-leather footwear. The sector, making casual, formal, sports shoes, and sandals, has seen production fall 50 per cent due to raw material shortage and 50 per cent – 70 per cent price hike amid the ongoing war in West Asia, he added.

Anshul Kumar, an industrialist in Rohtak and former president of the Rohtak IDC Industries Association, has urged the state government to take urgent measures to prevent the migration of factory workers.

“At present, the shortage of migrant workers is one of the biggest challenges for the industrialists. The workers are struggling for food due to an acute scarcity of LPG cylinders, forcing many to return to their homes until the situation improves. Some factories have even started preparing food for their employees to retain them. The state government must ensure an adequate LPG supply so that the workers can cook their meals, as no unit can operate without them,” Kumar added.

He warned that many factories could face closure in the coming days if the crisis was not resolved promptly. “Effective government action is needed, not only to support the industrialists during this challenge but also to prevent further migration of workers. In my factory, I have had to arrange food for workers at shared expense to keep operations running,” Kumar added.

Joginder Nandal, president of the IMT Udyog Welfare Association, Rohtak, urged the government to step in to control raw material prices, which had surged significantly following the ongoing war, leading to higher production costs.

“Most small industries procure raw materials from big industrial houses that set prices for everyone. The government should negotiate with these suppliers to ensure small industries can access raw materials at reasonable rates. The prices have risen sharply, by 40 per cent to 70 per cent, since the conflict began,” he said.

Nandal said while the government had reduced duties on certain imported raw materials until June 30, providing some relief, more support was needed. “Facilities for importing all types of raw materials should be made available to the local industries, and deadlines should be extended until the situation stabilises as small units too have to import different kinds of raw materials from various countries,” he suggested.

He pointed out that production had declined by upto 50 per cent due to the return of migrant workers and rising input costs. “The industrial units are not operating to full capacity, yet the industrialists must pay fixed electricity charges. The government should also consider providing relief on electricity rates,” he added.

Nandal further urged the government to allow the industrialists to defer their loan instalments until the situation normalised. “Repayment of loan instalments has become a major concern, especially when the units are not operating to full capacity. It will be a significant relief if the government permits a temporary deferment of instalments for a few months,” he added.