Losses to Kashmir’s economy piling up due to unrest

Business sector pegs loss at Rs 11,000 cr, with single day shutdown cost coming to Rs125 cr

There seems to be no end in sight to the losses being suffered by Kashmir’s economy ever since Hizbul Mujahideen commander Burhan Wani’s killing on July 8 sparked widespread protests.
The unrest has hit hard all business sectors, especially shopkeepers, tourism stakeholders and transporters. Other sectors like horticulture too are facing the heat due to continued shutdown calls coupled with curfew and restrictions.
According to the Kashmir Chamber of Commerce and Industry (KCCI), Valley’s apex business body, a single day of bandh causes losses between Rs 120 crore and Rs 130 crore. “According to our estimates, Kashmir economy suffers losses to the tune of Rs 120 crore to Rs 130 crore during a single day of shutdown,” said KCCI president Mushtaq Ahmad Wani.
Going by the KCCI, whose estimates have been backed by a few other business bodies of the Valley as well, 93 days of shutdown have therefore caused losses totalling over Rs 11,000 crore to the Kashmir economy so far.

Shopkeepers first victims
The shopkeepers, especially those in the city centre and on other main roads, suffer the most whenever a shutdown is called or curfew is imposed. During the present unrest, business activities have mostly remained confined to opening of shops selling essentials in the wee hours while a few other units have opened only for a few hours occasionally during the “relaxation” in the weekly
Hurriyat protest calendar
However, despite the losses, the KCCI and the other business body, Kashmir Economic Alliance (KEA), have been following the Hurriyat calendar that is issued every week. Even the smaller business bodies of local markets too have been adhering to the separatists’ protest calendar. “We follow the Hurriyat….how can we resume normal life when over 90 persons were killed during the past three months?” said Traders Federation Exhibition Road Magarmal Crossing general secretary Abdul Rauf.

Transporters worst hit
Even as shopkeepers have managed to open their shops on a few occasions, the unrest has hit transporters the most. No private bus has plied on the roads for the past 93 days. The movement of auto-rickshaws too has remained restricted. Two autos were burnt by protesters in Srinagar city on October 5 when comparatively larger movement of private vehicles was noticed on the roads.
A small group of transporters had staged a minor protest on October 6 against the separatist calendar, but the transporters’ unions too have so far adhered to the Hurriyat calls.
Mohammad Yasin Khan, who heads the KEA, an amalgam of various traders’ bodies, including that of transporters, said they were “common people first” and would continue to support the weekly Hurriyat calendar.

Tourism dead for the year
The unrest had started when tourism season was about to peak. Kashmir witnesses peak tourism season during the summer months and going by the preliminary estimates of the government, the tourism sector has suffered a loss of over Rs 3000 crore due to the unrest.
Most of the hotels and houseboats are out of business and restaurants too have not opened during the unrest.
“I have a hotel that has remained shut for the past three months. And who will come to a restaurant in the evening? All have remained shut too just like other business units, and the shopping rush that lasts for a couple of hours, which you see during relaxation, is mostly for essentials,” the KCCI president said.

Horticulture too faces heat
As harvesting of fruits starts around mid-September, apple growers said they faced labour and transportation problems. The state produces around 18 to 22 lakh metric tonnes of fruits, and 80 per cent of it comprises apple.
MY Dar, president, Fruit Growers and Dealers Association, Baramulla, said non-local labourers had left the Valley and as a result they faced immense problems while harvesting fruits. He said they were being charged higher rates than last year by the truckers.
Abdul Hamid, a fruit grower of south Kashmir said this year they could not sell their produce at the choicest prices. “While transport was expensive this year, we did not bargain much this year. We were glad that we sold our produce at comparatively cheaper rates,” he said.