The Hindu Business Line : Rains cause `economic lay-off' in Mumbai

With most Mumbaikars indoors and companies downing shutters due to incessant rains, the country's commercial capital has suffered losses worth thousands of crores.

Chambers such as the CII, the FICCI, the Indian Merchants' Chamber (IMC), and the Federation of Indian Export Organisations (FIEO), have estimated losses worth Rs 20,000 crore due to the downpour, resulting in an "economic lay-off" for three consecutive days.

According to members of these organisations, the service and export sectors were the worst hit.

"In such fragmented working conditions, losses are difficult to quantify. But comparing previous figures and volumes of trade in Mumbai, it would have easily touched the Rs 20,000 crore-mark," said Dr Vaijayanti Pandit, Director of FICCI Western Region Council.

A general-cum-industry-wise break-up (estimated) of the losses gives a fairly good idea of the impact of the rains on trade and commerce.

The attendance figures of companies (including labour turnout) varied between 10 per cent and 60 per cent on Tuesday and Wednesday. On Tuesday, the numbers varied from 10-30 per cent.

GONE WITH THE RAIN

General losses (transportation, retailing, productivity and man-hours, etc.,), estimated using `bandh' methodology (as done during hartals), have been set at Rs 2,000 crore (on Tuesday).

Small-scale industries suffered profit drainage of around Rs 1,000 crore (for three days). It is estimated that agricultural farms have logged net losses worth Rs 400 crore.

Incidents of water-logging being low this time, the engineering sector (including manufacturing facilities) is said to have suffered losses worth Rs 200 crore only.

The biggest casualty, however, is the export sector, with an estimated loss of Rs 1,200 crore per day. Of this, losses to the tune of Rs 800 crore are attributed to the export of perishable items (around 65 per cent of the net perishable exports is shipped from the Mumbai port). The growing flower export business has also been severely hit.

"Our business is more time-dependent. Due to heavy rains and the resultant lay-offs, we could not time the business to our advantage. Freight forwarding has been affected since Monday and goods are not arriving at the port," said Mr Sharadkumar Saraf, Chairman of FIEO.

NEED OF THE HOUR

"Rain is not new to Mumbai. People (traders and businessmen) should be aware of the consequences of torrential rain and flooding. It is high time the Government pulled up its socks and did something substantial to improve infrastructure in the city," said Mr Arun Patankar, Principal Advisor, CII Western Region. Mr Nayan Patel, President of the IMC, also held the same opinion.

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