Protests take a toll on Indo-Pak trade via Wagah

Continuing protests in Punjab over alleged desecration of Sikh religious symbols have taken a toll on the industrial activity in the state and India-Pak trade. The cross-border trade through the Wagah-Attari border has come to a standstill. About 500 trucks, carrying perishable and non-perishable items, move across the international border at Wagah check post a day. In the absence of any movement in the last five days, perishable items have damaged, said traders.

"I received over two dozen calls today from my clients about the delivery of cement but I am clueless. Trucks are stranded at different places all over Punjab, fearing attack," said Pradeep Sehgal, vice-chairman of Indian Importers Association, and partner, Noble Translink Private Limited.

Pakistan supplies cement and chemicals to industry in Punjab. India mainly imports cement, gypsum, dry fruits, rock salt, etc., from Pakistan and it exports meat, vegetables, soya meal , raw cotton and yarn.

India registered imports of one million tonnes from Pakistan and exported goods of about 0.26 million tonnes during the October-March 2014 period. There has been a consistent decline in the exports to Pakistan in the past few years and the gap between import and export through Wagha has widened.

Besides, the inter-state movement of goods is also crucial to Punjab's economy. Daily about 3,000 trucks move between Jammu and Punjab. Punjab is also a transit point for the traffic from the rest of the India to Himachal Pradesh. Traders are also feeling the heat as they lost peak festival seasons business.

While no official figures are available on the exact loss in value, Harish Garg, a member of the Confederation of All India Traders, says, "The demand for all goods from eatables, garments, home decor, gift items and toys is at its peak during this period. Businessmen cannot afford large inventory due to the cost of holding stock. So most of the wholesalers are running short of the and the impact will be seen on retailers very soon."

The economy of Punjab is facing a double whammy because the paddy harvesting is in a full swing and the dispersal of paddy stock in the grain markets has become a challenge. The procurement agencies are lifting the stock at a snail's pace, as farmers have not been able to transport their crop to the markets, said Raj Kumar Bhalla, president of the Ludhiana Arhtiya Association. The law and order situation is stressed in Amrirtsar, Jalandhar, Moga and Ludhiana, where the incidents of alleged sacrilege of religious scriptures took place.

The delayed harvesting would have its repercussions on the sowing of wheat and potato, the major rabi crops in Punjab and a late sowing would affect the yield.

The state's economy suffered due to farmers' agitation in the last few weeks when they blocked the rail traffic. The protests might also cast a shadow over the proposed Invest Punjab Summit, scheduled for October 28-29.