Intermittent closure of the Srinagar-Jammu highway this winter has caused Kashmir economy a loss of roughly Rs 3,325 crore, which is about Rs 95 crore a day on an average.
During the past three months, the road has been closed for35 days due to landslides. The losses have a cascading effect on the economy ofthe Valley as it disturbs trade cycle. For example, closure of road createsshortage of supplies and raw material, so the industries have to pay idlewages. Some businesses that depend on outside supplies, like butchers, sit idlefor the period the road is closed.
The recently-released government figures say that J&Kimported goods and raw material worth Rs 58,050 crore in 2017-18, 60 per centof which (around Rs 34,800 crore) was imported to the Kashmir division.
Though there has not been a detailed study on thehighway-closure losses, business leaders say 30 per cent worth of supplies arelosses, as trucks from other parts of the state carry perishable goods, which,once stuck in the highway, lose their value on arrival in the Valley.
Being an import-driven state, around 80 per cent of goodsand raw material come from other parts of the country, officials say.
“Apart from the situation, the miserable condition ofSrinagar-Jammu highway is our biggest cause of concern. Businessmen have to pay idle wages to thestaff, sales have drastically reduced due to non-availability of supplies,”said president Kashmir Chamber of Commerce and Industries Sheikh Ashiq.
Chairman Kashmir Economic Alliance Muhammad Yaseen Khanlashed out at the governor’s administration for its “callous approach”.
“Governor’s administration has miserably failed the peopleof Kashmir this time. Due to prolonged closure of the highway, supplies havedried up, which in turn has stoked price rise. Prices of eatables haveskyrocketed while as the business community suffers huge losses.”
“This winter, thelone usable link between Kashmir and rest of the world remained closed for mostof the time as even a slight drizzle led to suspension of traffic, which isabsurd in this era. Communication and road links are backbone of any economy,unfortunately in Kashmir we have been denied both,” he added.
The Logistics Ease Across Different States (LEADS) Index hasgiven only one index point to J&K, placing it at the bottom of the list ofstates having “worst logistic” connectivity in India.