Srinagar/Jammu Tawi: The ongoing turmoil in Kashmir has given a severe blow to economy of Kashmir Valley suffering a tentative loss of Rs 6,400-crore, with businesses being badly hit due to curfew and separatist-sponsored strikes. Tourist and other business activities in Kashmir have come to a halt for the past 49 days. “Kashmir is suffering losses of about Rs 135 crore daily. This estimates to over Rs 6,400 crore so far,” said Mohammad Yaseen Khan, president of the Kashmir Traders and Manufacturers Federation. Khan, however, said these figures were based on the daily business six months ago.
Jammu is not behind in the matter of sufferings as it too has suffered whopping amount thus bringing economy to its knees, hitting every sector be it industry, trade, hotel or tourism.
The prevailing situation has jeopardised the employment opportunities of thousands of youth in the region as industrialists and traders believe that it could take at least two consecutive financial years to recover from the losses they have suffered so far. Many of business establishments, including hotels and industrial units, have lowered their staff strength.
The industrialists are in a catch-22 situation due to high production losses and payment of fixed monthly expenses. “The industrial sector is in a very miserable condition in Jammu as it is difficult for us (industrialists) to pay fixed monthly expenses. The industrial sector of Jammu has been suffering a loss of about Rs 100 crore per day and it comes around Rs 5,000 crore since the eruption of violent protests in Kashmir on July 8. Nearly 70 per cent sale of our products is in the Kashmir and Ladakh regions where now it is difficult to transport goods,” said Annil Suri, a noted industrialist and former president of Bari Brahmana Industrial Association.
Similarly, the losses of Jammu's hospitality industry, including hotels, restaurants and lodges in Katra town, have been worked out at around Rs 350 crore till date and the figures are piling up with every passing day. “All advanced bookings have been cancelled by visitors and tourists while we have received no fresh bookings since the start of the unrest in the Kashmir valley. There is zero occupancy in our hotels. There are around 300 hotels and lodges in Jammu district alone which have suffered a cumulative loss of about Rs 250 crore so far. The situation is worsening with every passing day,” said Inderjeet Singh Khajuria, president of Jammu Hotels and Lodges Association.
Hotel and Restaurant Association, Katra, said nearly 450 hotels and restaurants in the town had suffered losses of about Rs 100 crore while the overall losses of Katra's economy was pegged at Rs 500 crore so far.
“Another major issue is that the prevailing situation has rendered thousands of persons working in different business establishments jobless,” he said.
Neeraj Anand of the Chamber of Traders' Federation, said, “A single visit to any market of Jammu is self-explanatory of crippled business activity here. Every trader—be he from trade, tourism or hotel industry–has been crying. Leave aside this financial year, it will be very difficult for traders to recover their losses during the next financial year as they are running in several thousands of crores.”
“While traders of the Kashmir valley would be compensated for the losses incurred by them, Jammu traders have seldom been paid for any loss. Industrial houses are unable to plan for production due to unrest, while traders have been forced to go for discounts in the form ‘sales' amid peak season,” he added.
