‘Govt must exempt cold storage units from octroi’

Industry & Lockdown

THE lockdown imposed to contain the spread of the Covid-19 pandemic has hit the business community hard, including cold storage units. Rajinder Marwaha, the owner of Marwaha cold storages, throws light on the issues of the cold storage industry and expectations from the government in an interview with Charanjit Singh Teja. Excerpts:

How has lockdown affected cold storage units?

Cold storage units suffered a major blow after the imposition of the lockdown. There are around 40 major cold storages in the district. Every cold storage unit employs around 30 workers. The industry is depended on hotels, restaurants, marriage palaces and tourism. When everything is shut, cold storage units can't survive alone. All units have large scale power connections and Punjab State Power Corporation Limited (PSPCL) is regularly sending power bills on an average basis. Due to the lockdown, goods carrier vehicles are off road. Major space in the cold storages is now empty as fruits do not arrive in the city. But, we have to pay all expenses.

Most of the cold storages in rural areas keep agrarian products. Farmers store potato seeds and vegetables. Traders store fruits such as apple and orange. We have to keep operating our units even 90 per cent space is vacant. Paying all expenses such as power bills and salaries is a major challenge. — Rajinder Marwaha, owner of Marwaha cold storages

Do you expect resumption of business in near future?

The cold storage industry will revive on the return of normalcy. Hotels, restaurants and resorts will not likely open even after the curfew as people will abstain from dining out and going for outings. When the government will lift the curfew, it is likely to grant permission to the hospitality sector to resume functioning only with riders as it will avoid gathering of people and ensure social distancing. Until the hospitality industry revives, we can't expect resumption of business.

How are you dealing with the issue of paying salaries to workers?

Every cold storage unit has some permanent employees, but workers are engaged in loading and unloading work on contact. We have staff who get salaries that include manager, accountants, machine man and office boys. We are paying them salaries. We will take care of our workers as most of them are with us for years. The government should also support them. Contractual labour returned home. Most of the workers in cold storage units were from Jammu and Kashmir and Himachal. Shortage of workers will spell trouble after reopening of units.

Do you consider the current crisis a challenge or an opportunity?

It is a challenge for cold storage owners to operate the unit without required storage. Most of the cold storages in rural areas keep agrarian products. Farmers store potato seeds and vegetables. Traders store fruits such as apple and orange. This time, we did not get apple from Kashmir. We have to keep operating our units even 90 per cent space is vacant. Paying all expenses such as power bills and salaries is a major challenge.

What are your expectations from the government?

We need an economic package for revival. At least, the government should subsidies our power tariff as we deal with agrarian products. Now, PSPCL is collecting bills on an average basis, which will not help. We have been demanding exemption from octroi tax on power for long. Now, government should exempt us from it. Cargo should be revived at the Shri Guru Ram Das Jee International Airport Amritsar so our vegetables and other perishable items can transport to other countries.

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