The Hindu Business Line : Hartals in Kerala wreaking havoc: CII

PROTEST for a cause is necessary for the healthy survival of democracy. However, hartals and bandhs should not be organised at the cost of economic growth and suffering of the people, the Kerala chapter of CII has said.

The CII said bandhs and strikes do not work to benefit society. If anything, they demean the very cause they are supposed to promote. Will the passengers stranded at airports, railway and bus stations praise the parties that have organised the bandh?

Will shopkeepers, businessmen and traders who lose their day's earnings down their shutters voluntarily? Will those who earn daily wages hail the call?

"The bandh declared in Kerala last Wednesday had its share of stranded and desperate citizens," said Mr M.K. Koshy, Chairman of CII Kerala chapter.

Frequent hartals are affecting the day-to-day life of Keralites and paralysing the State's economy. A study conducted by the Institute for Enterprise Culture and Entrepreneurship Development, revealed that the popular explanation that higher incidence of hartals in the State is due to high social and political consciousness of Kerala society does not really stand empirical scrutiny and that it only indicates the increasing criminalisation of politics, the CII said.

The industry is facing stiff competition in a globalised economy, which calls for best manufacturing practices. Frequent strikes and hartals affect competitiveness of the industry. The industry has to bear the cost of increased stocking of additional raw materials including demurrage, which would be 4-6 per cent of the cost of production.

The cost of raw materials increases due to materials stuck in ports. The logistics and transit costs would increase by 3 per cent of the total cost of production. There would be variation in volume of production from 6-8 per cent.

All this will add to the cost of products which in turn will result in decrease in sales; and inability to meet export obligation/ delivery schedule: ultimately resulting in customers choosing alternative suppliers outside Kerala and export orders being cancelled. On an average, the total loss of production would be to the tune of Rs 650-700 crore a day due to strikes and hartals.

The hardest hit are the poorer sections of Kerala society such as head-load workers, farm labourers, auto-rickshaw and taxi drivers and those who deal in perishable goods.

Citing the Bombay High Court's recent order, the CII said bandhs were causing hardship to lakhs of people. In the same vein, the order of the Kerala High Court declaring bandhs illegal and unconstitutional, which was upheld by the Supreme Court, should be implemented for the benefit people at large.

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