Srinagar, March 30: A delegation of the Kashmir Chamber of Commerce and Industry on Sunday raised concerns over the impact of the ongoing Middle East crisis on trade, industry and micro, small and medium enterprises (MSMEs) in Kashmir during a meeting with Divisional Commissioner Kashmir Anshul Garg.
The delegation, led by KCCI President Javid Ahmad Tenga, discussed a range of issues affecting businesses in the Valley, including disruptions in exports, liquidity constraints and supply challenges faced by the hospitality sector.
MSMEs, Exporters Facing Financial Stress
During the meeting, Tenga said the ongoing crisis in the Middle East has significantly affected Kashmir’s trade and industrial activities. He noted that many MSME units, artisans and exporters who rely on markets in Gulf countries are facing disruptions in demand, supply chains and payment cycles.
According to the chamber, delays in the realisation of export proceeds from Middle Eastern markets have created serious liquidity challenges for businesses. KCCI urged the administration to facilitate extensions and relaxations in pre-shipment and post-shipment credit facilities to help exporters manage cash flow pressures.
The chamber also recommended suspension or deferment of bill crystallisation norms under the prevailing circumstances and called for additional time for exporters to recover payments and stabilise operations.
KCCI informed the meeting that it had already taken up the issue with Directorate General of Foreign Trade and its Director General Luv Aggrawal on March 25 regarding the implications of the Middle East situation on exports.
Call for Implementation of MSME Act
The delegation stressed the need for strict implementation of the provisions of the MSME Development Act to protect the interests of small businesses. Members highlighted concerns over delayed and defaulted payments, which they said have worsened the liquidity crisis and affected the sustainability of enterprises.
KCCI suggested setting up a structured mechanism to monitor and address deferred payments and recommended regular review meetings with stakeholders to ensure timely settlement of dues and effective enforcement of the MSME Act.
Concerns Over LPG Supply and Connectivity
During the interaction, participants also raised concerns about the shortage of commercial LPG cylinders affecting hotels and restaurants in the Valley. They stressed that the hospitality sector should not suffer due to supply disruptions, especially ahead of the upcoming tourism season.
Responding to the concerns, the Divisional Commissioner assured the delegation that adequate supplies of commercial LPG cylinders are available and that steps are being taken to ensure uninterrupted availability.
The delegation further requested improved connectivity between Srinagar and key destinations such as Jammu and Delhi in view of the ongoing runway repairs at Srinagar Airport. They also urged authorities to increase train services to facilitate travel for tourists and business visitors.
Administration Assures Support
Garg gave a patient hearing to the issues raised and assured the delegation that the administration would address them on priority. He reiterated the government’s commitment to supporting MSMEs, exporters and the overall business ecosystem in the region.
The meeting was also attended by KCCI Executive Committee members Ashiq Hussain Shangloo and Gowhar Maqbool, who is also the president of the Kashmir Hotels and Restaurant Owners Association.
