Srinagar, April 4: A high-level stakeholder consultation chaired by Commissioner/Secretary Industries and Commerce, Vikramjit Singh, on Saturday reviewed the impact of the ongoing West Asia crisis on industrial units in Jammu & Kashmir, with industry representatives highlighting multiple disruptions affecting production, exports and financial stability.
The meeting brought together key stakeholders, including representatives from PHD Chamber of Commerce and Industry (PHDCCI), who described the interaction as timely and crucial amid evolving global uncertainties.
Representing PHDCCI, A P Vicky Shaw outlined a series of challenges confronting industries in the Union Territory. He said sectors dependent on petrochemicals and imported raw materials—including plastics, chemicals and synthetic apparel—are witnessing a sharp surge in input costs due to supply chain disruptions linked to the crisis.
Concerns were also raised over energy availability, particularly affecting service sectors such as hotels and restaurants, as well as manufacturing units reliant on LPG and LNG. Stakeholders pointed to disruptions in LNG supplies, which are impacting fuel availability and operational continuity.
Exporters, including those in the handicrafts sector, reported significant setbacks due to rising freight charges and shipping delays, leading to cancelled orders and stalled consignments. Increased logistics and insurance costs were further squeezing margins, especially for small and medium enterprises.
The meeting also flagged mounting financial stress on MSMEs, with participants warning of potential cash flow issues and credit pressure amid fluctuating interest rates. Industry representatives suggested measures such as export subsidies to offset higher freight and insurance costs for Middle East-bound shipments, partial advance payments, wider use of Letters of Credit, diversification of shipping routes, and enhanced business outreach in European markets.
It was further highlighted that disruptions could adversely affect exporters’ credit profiles, including CIBIL scores, prompting a call for intervention by the Industries and Commerce Department with financial institutions.
Responding to the concerns, Vikramjit Singh assured stakeholders that there is no immediate or imminent shortage of energy or oil supplies. He said alternative import arrangements are being actively facilitated by the Prime Minister’s Office to ensure continuity.
He also warned against hoarding and black marketing, stating that strict legal action would be taken against violators.
Reaffirming the government’s commitment to a collaborative approach, the Commissioner/ Secretary said stakeholders would be kept closely engaged as the administration navigates the challenges arising from the West Asia situation.
