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Despite state assurance, supply, labour shortage threaten operations at factories producing essentials

Devinder Singh Nandal, director of a pharmaceutical manufacturing company in Manesar which produces orthopaedic and gynaecologist medicines and pain relievers, said

Published on: Mar 31, 2020, 22:49:24 IST
By , Gurugram
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Devinder Singh Nandal, director of a pharmaceutical manufacturing company in Manesar which produces orthopaedic and gynaecologist medicines and pain relievers, said that though his product was always covered under essentials and supply of raw materials was assured, he may soon be forced to shut his factory.

HT Image
HT Image

“A big problem” looms over my factory, Nandal said, adding that he wasn’t being able to get the regular quantity of raw materials from Himachal Pradesh and Gujarat to maintain his usual supply.

“Supply trucks are stranded across highways and labourers are leaving for their hometowns fearing lockdown extension. Before the lockdown, raw material was supplied from Delhi and Himachal factories at least three times a week. Since the lockdown, we are only being able to get supply once in a week. How can you ship two weeks’ worth of manufacturing material at once?” said Nandal, who runs five such medicine factories across India, and is currently getting two trucks of raw material per week in his Manesar factory.

His logistics providers told him that they would not be able to complete deliveries until March 31. “One truck of deliveries will last me for only three to four days of manufacturing operations,” said Nandal, who was forced to ask customers to extend the promised delivery dates.

Nandal, who supplies two-three trucks of goods to major distributors in Delhi, Rajasthan and Uttar Pradesh, added that his supply capacity has also been hit because of packaging material shortage and the manufacturers, in turn, have asked for an extension of a week as their labourers have also left work.

While Nandal has written to the deputy commissioner of police for assistance, his peers also face similar material shortages and labour issues.

Sanjeev Khemka, director of KCL Limited in Sector 24 of Faridabad, has been finding it difficult to run the operation of his packaging company in the absence of required labour force. Khemka’s firm supplies processed food products to Andhra Pradesh, Himachal Pradesh, Panta Saheb and other parts of Haryana.

“Only 20% of factory machines are operational. The raw material, which was kept in stock is over and now we need raw material supply for the next week’s production,” said Khemka, who sources various raw materials from different parks of the country. For instance, sugar come from UP and dry powder comes from Himachal and Gujarat.

Many industrialists in Gurugram district said the raw material procured is also beingsutilised at a fast pace as demand has increased in local grocery stores, who fear their running stock would run out in a few days and they would have to down shutters.

While the Haryana state government has assured the raw materials will start to reach factories by end of this week as trucks stranded at different state borders will start arriving after initial hiccup.

The district authorities also said they are trying to maintain uninterrupted supply-chain mechanism for industries dealing in essential and non-essential items. “Their logistics are taken care of and the raw material, which was an issue, has been sorted,” Faridabad deputy commissioner said.

Talking to HT, chief minister Manohar Lal Khattar, said the government is committed to providing all essential items to the citizens during this lockdown period. “Any industry which is producing essential items will not be impacted by this lockdown period because we are committed to ensuring there is no labour shortage and no raw material shortage. We do agree due to the lockdown some supplies might get impacted, but that will be for a brief period because the government is committed to giving all the support needed to keep the industries operational,” Khattar said.

But KCL’s Khemka reiterated that his biggest concern was absence of labour. “If these issues are not resolved in the coming week, we might have to stop the production,” he said.

Faridabad deputy commissioner Yashpal Yadav, who formed a team of officials to visit industrial areas to address issues raised by factory owners, said labourers who left the city were construction and daily wage earners. “The factory workers are mostly here and are paid monthly salaries. There is no reason for them to leave. We have made arrangements for them to live inside the factory,” he said.

Gurugram deputy labour commissioner Ramesh Ahuja said factory workers have been asked to stay back inside the factories. “We have asked the management to provide them with the wherewithal to maintain basic hygiene and other essential items for sustenance so that they do not need to visit their homes. They are salaried and not daily wagers so there is hardly any labour shortage in these areas,” he said.

However, an on-ground check by HT on Tuesday revealed a new problem in the midst of migration and Covid crisis. “Only 5% labourers are working, rest have left for their villages. There are no workers except for those who belong to this area,” an industry source said requesting he not be named.

A factory worker HT spoke with said they were leaving because their peers have left. They added they were leaving despite assurance of safety and job. “We don’t want to stay back as we are being pressured by our families back home. We have collected enough free ration to last us two months; we have been told to return home,” said Munshi Ram, who worked with a factory in Manesar and hails from Bihar. He was seen walking with a large group of people towards Badshahpur from where Haryana Roadways continues plying buses.

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