Delay in payments, labour issues worry industrialists

Shivani Bhakoo

Tribune News Service

Ludhiana, June 3

Due to Covid-19 pandemic, the industry has been severely hit. It is not only the labour issue, which is a cause for concern, but also the long stuck payments of businessmen. The entire chain of business has been disturbed because of these two major factors.

Many leading names in the industry have just issued post-dated cheques. We have been making rounds at their offices, but they are not willing to entertain us. I have to get around Rs20 lakh from the market, but I am just getting peanuts and with that, I cannot even pay salaries of workers or electricity bills. — A manufacturer, Ludhiana

Talking to The Tribune, president Furnace Association, Mandi Gobindgarh Mahinder Gupta said the industry was not getting the labour and the stuck payments were another jolt for them.

“As of now, people are saying that because of the lockdown, payments could not be made. But now almost all the industries are open, the production may have been upto 30 per cent in units. As far as payments are concerned, we will be able to know the details only by June 15. The genuine buyers will start making payments because everything depends on the entire chain in business. One of the vendors of the garment manufacturing in Focal Point area, wishing not to be mentioned, said even the leading names in the industry were not willing to provide the payments,” said a manufacturer.

“They have issued us post-dated cheques. We have been making rounds at the offices, but they are not willing to entertain us. In such a scenario, how can we continue to get more stocks, when even the previous payments are standing for so long. I have to get about Rs 20 lakh from the market but I am just getting peanuts and with that, I cannot even pay the salaries of workers or the electricity bills,” he added.

The businessmen say this is the time for cash sales and no one is willing to provide material on credit. Badish Jindal, running wire drawing unit, said the payments for the last over 3-4 months are yet to be received. “We, in our trade have decided to provide stocks on after receiving cash only. We will earn less but in this scenario, we cannot afford to take risk,” he said.

The industry has been crying for attention because of the stuck payments.