Punjab: Unable to complete orders, combine harvester makers stare at losses

Punjab-based combine harvester makers are staring at losses as they are unable to complete orders received from parts of the country due of the coronavirus lockdown.

Their hopes were dashed by the labour shortage due to which they could not run their manufacturing units to their full capacity in the peak season of March and April.

According to the manufacturers, they were expecting to sell about 4,000 of these machines in several parts of the country such as Haryana, Bihar, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh and Maharashtra.

But a shortage of labour force adversely impacted their manufacturing operations.

Migrants from Bihar and UP, who form a sizable chunk of the workforce, have not returned yet, said Amar Singh, general secretary of the All-India Combine Manufacturers' Association.

He added that they are left with just 1/10th of the workforce.

It was a peak time for us. But all expectations have been dashed, said Amar Singh.

Nobody knows how long this lockdown will last, said another combine harvester maker, Sukhwinder Singh.

They are worried about the completion of their orders for which they have already received some payment in advance.

Farmers who placed orders with us are now demanding their money back with interest and some are even demanding double the amount, said Sukhwinder Singh, who was aiming to sell 250-300 machines.

They appealed to the Centre to waive bank interest on loans for six months, at least. They also wanted that their electricity bills be waived for six months.

The manufacturers said they did not have enough financial resources to make payment pay to their workers.

"The government should bear the burden of wages. We are not in a position to pay wages. The government can pay them from provident fund or ESI fund, they said.

There are nearly 100 farm equipment makerslarge, medium and small-- who make combine harvesters in Punjab.