Ashfaq Wani Economic Disaster
In central Kashmir’s Budgam district, Nowbugh is known as Chota Punjab for its unending vegetable swaths. The village that comprises hundreds of families predominantly relies on vegetable farming and supply the output to many states of North India. But this year due to the COVID-19 outbreak that wreaked havoc in the world economically, Nowbugh is suffering unimaginable financial losses.
“The per kilogram of carrot would cost Rs 50 in the market during this season. This year rates have slummed down to Rs 10 that incurs huge losses for us,” says Reyaz Ahmad, a local farmer. Reyaz claims that the losses are due to a steep decline in demand and supply ratio followed by the continuous nationwide lockdown that still goes on. With no change in the situation, the locals here fear that their crop would suffer huge financial losses and many of them are heading for bankruptcy and will break their economic strengthen.
Since vegetables are the essential commodities and are still having a market value, the cherry farmers in Kashmir have already gone through the financial turmoil. This year, the cherry crop, an economy worth Rs 130 crores suffered a major blow when it failed to reach the market on time due to stringent lockdown. But the situation of the economic slowdown of Kashmir doesn’t end here. With Kashmir being an agrarian economy, it fears a massive financial breakdown in the coming months in case the lockdown prevails due to COVID19.
“The total economic losses in Kashmir are so far estimated up to Rs 40000 crores. But the losses are not actually due to COVID19 only,” claims Sheikh Ashiq, KCCI president.
Ashiq says that after the Government of India revoked provisions of Article 370 in Jammu and Kashmir on August 5 last year, the erstwhile state witnessed a drastic decline in economic activities as the Union government imposed severe restrictions.
The advisories were issued to expel tourists and non-locals from Kashmir. Later the severe restrictions were imposed by the government,” he says, adding that KCCI on August 2, 2019, issued the statement and said that it will have long term impact on Kashmir economy.
The KCCI demands the financial injection to infuse the Kashmir economy and fears that the economy will collapse soon in case the government does not intervene.
The tourism industry which after agriculture is the second-largest contributor to the UT’s economy is almost crippled. Hundreds of people have already been left jobless and the timely intervention to sustain the economy is a unison demand from the stakeholders.
“The prevailing situation in the tourism industry gives me no hope,” Javeed Bashir Burza, Kashmir hotelier and former president of Pahalgam hotel and restaurants association told The Legitimate. “I think if there is no intervention and package announced by the Union government, it is doomed once for all.”
Burza claims that in his career of 35 years, he has never come across such a terrible situation.“Even in the 1990’s when the insurgency in Kashmir was hitting hard; the tourism industry didn’t suffer to this extent. It is a complete shutdown”.
The unofficial estimates suggest that nearly 35 lakh people are depending on the tourism industry and after Government jobs and the Horticulture sector, tourism is the largest economic contributor to the UT.
Meanwhile, while the restrictions in Kashmir in the last three months are due to COVID19, however, the businessmen are insisting that the government shall offer the economic packages to all those who suffered prior to COVID19 lockdown when the normal life was shut by Union government on August 5.
“It was a government-imposed restriction to avert any reaction to its August 5, 2019 decision. So the government is supposed to bear the losses of common people,” adds Burza.
The recently released report by “The Forum For Human Rights”-a group of concerned citizens even castigated the Modi led government for the economic crisis in Kashmir. The group that comprises well-known intellectuals of India includes Historian Ramachandra Guha, Air Vice Marshal (Retd) Kapil Kak, Director-General Delhi Policy Group, Radha Kumar, former diplomat Nirupama Rao and many others. The group, however, has been vocal in criticizing the government in most of the issues including NRC and many others.
The report of the group that was published on 22 July maintains that the economy of Jammu and Kashmir was much better than those of other border states in India. However, after the government imposed a lockdown on August 5, 2019, the economy has badly suffered.
“The August 2019 lockdown plunged the state into a sharp downward spiral. By the end of December 2019, the economy of the valley was in dire straits,” it writes referring to a report presented by KCCI that estimates roughly Rs 18000 crores losses.
“Estimated industry losses during the period January-July 2020 is Rs 22000 crores that is due to ongoing COVID19 lockdown,”
With the culmination of the previous year’s economic losses of Rs 18000 crores, the total amount is Rs 40000 crores.
“The retail sector is losing every day around Rs 150 crores and thousands of people have already lost jobs. We are unable to understand how to restart from here,” Kashmir Traders and Manufacturers Association president Mohammad Yasin Khan says.
Khan is not so hopeful to see the revival of economic activities in Kashmir in the future until some comprehensive measures are being taken.
“The government is actually run by the business people. So it needs to think about this community who are the worst sufferers. They shall help us to stand again so that the government can again keep collecting taxes from us”.
Meanwhile, hundreds of people who have been working in the private sector have switched to manual jobs to sustain their livelihood.
The transport sector, the worst hit of the ongoing crisis has left hundreds of people jobless and forced those drivers to work as masons and manual labourers.
“I own a taxi and was earning decently to feed my family. But the situation has left me jobless as public transport is still barred to ply on roads,” Ghulam Rasool said, who is selling vegetables on a handcart at Batamaloo.
The transporters claim that lots of drivers have switched over to manual jobs with no definite source of income.
“Some have decided to sell masks, socks, and other items on the roadside as they face hard economic conditions,” Farooq Ahmad says.
The country had just gone through a single lockdown that began in March this year, however, in Kashmir; the lockdown had started in August last year due to which the economy in Kashmir has suffered beyond imagination.
“The back to back lockdown has broken the backbone of the fruit industry in Kashmir. Amid COVID lockdown we were not allowed to work in the fields and spray pesticides. This has resulted in 60 per cent waste of apple produce. We are not sure of the quality of the remaining 40 per cent given to poor maintenance of orchids this year,” Junaid Rasool, a fruit dealer who is heading S R Enterprises said.
“Now the hopes are set on Jammu Kashmir administration and the Union government for an economic package to bring the economy back on rails. “
