PR No – 38
16th February, 2024
New Delhi
Farmers’ agitation will impact industry and employment, may cost more than Rs 500 crore everyday: PHDCCI
During the last ten years (FY13 to FY23) the Agriculture sector has witnessed a major breakthrough; Agriculture GDP increased 172%, agri exports crossed USD 50 billion
While appreciating the constructive talks between the farmers’ unions and Government of India, Shri Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, apprehends a severe hit to trade and industry and loss of employment in the Northern States. The cost of lingered agitation will be more than Rs 500 crore per day and will have an impact on Q4 GSDP of Northern States, said Shri Sanjeev Agrawal, in a press statement issued here today.
We look forward to an early resolution of the issues from both the Government and the farmers, with a common consensus for the welfare of all in the country, said Shri Sanjeev Agrawal.
Farmers’ agitation is severely impacting the businesses of MSMEs in Punjab, Haryana, Delhi and parts of Uttar Pradesh and Rajasthan as raw materials of such units are procured largely from other States to execute production processes and to meet up demand of the consumers, said Shri Sanjeev Agrawal.
The major hit will be on the MSMEs in Punjab, Haryana and Delhi. The combined GSDP of Punjab, Haryana and Delhi is estimated at Rs. 27 lakh crore in 2022-23 at current prices. There are around 34 lakh MSMEs in Punjab, Haryana and Delhi which employ about 70 lakh workers in their respective factories, said Shri Sanjeev Agrawal.
The economic activities such as the food processing, cotton textiles, garments, automobile, farm machinery, information technology, trading, tourism, hospitality and transport will be severely impacted by the continuous farm agitation with the disrupted supplies of many raw materials to the industry, said Shri Agrawal.
The plethora of schemes and initiatives announced by the Government with the aim of growth and development of agriculture sector including PM-KISAN SAMMAN Yojana, PM Fasal Bima Yojana and Pradhan Mantri Kisan Sampada Yojana, among others and an allocation of Rs 1.27 lakh crore in Union Budget 2024-25 to Ministry of Agriculture and Farmer’s Welfare, are highly appreciable, he said.
Further, the string of recent reform measures for agriculture and rural sector including application of Nano DAP on various crops, Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, and Electronic National Agriculture Market will help further enhance the farm incomes, said Shri Agrawal.
The growth in MSP of the major crops ranges from 54% for Urad to 116% for Jute in the last ten years (FY 13 to FY 23), with an average of 86% for 2012-13 to 2022-23, said Shri Agrawal.
On the back of various reforms implemented by the Government, the agriculture GDP has more than doubled at 172% in the last ten years, from Rs 1675107 crore in 2012-13 to Rs 4557599 crore in 2022-23 at current prices. Whereas the Industry GDP has grown at 139% in the last ten years, from Rs 2923394 crore in 2012-13 to Rs 6988791 crore in 2022-23 at current prices. In recent years the agriculture sector has shown a consistent growth rate of more than 3% every year from 2019-20 to 2022-23. During the fiscal year 2022-23, India’s agricultural exports surpassed US $50 billion, which is highly appreciable, said Shri Agrawal.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry