While credit guarantees and liquidity measures had been taken by the central government, transmissions were happening through the bank but needed to be expedited.(Sunil Saxena/HT)
While credit guarantees and liquidity measures had been taken by the central government, transmissions were happening through the bank but needed to be expedited.(Sunil Saxena/HT)

Post-lockdown, cash flows, supply chain and labour shortage are top issues for industries: MCCIA

This second survey of 155 MSMEs consisting of manufacturing and service industries, was conducted a week after the lockdown was opened, while the first survey was conducted a month ago
Hindustan Times, Pune | By HT Correspondent
UPDATED ON MAY 30, 2020 04:10 PM IST

A survey conducted by the Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA) here has revealed that supply chain issues, delayed cash flows and labour issues are among the major concerns of medium, small and micro-enterprises (MSME) in the Pune industrial belt, a week after the lockdown was lifted for industries.

This second survey of 155 MSMEs consisting of manufacturing and service industries, was conducted a week after the lockdown was opened, while the first survey was conducted a month ago.

Prashant Girbane, director general, Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA) said, “The second survey, conducted in the week over three to four working days revealed interesting aspects about the top three issues. The survey revealed that 69% of the industries reported that supply chain issues and delayed cash flows were a major concern while 39% (61/155) said that labour issues (like migrant labourers going back and local manpower refusing to come back to work) was a major concern.

Elaborating on these points, he said that cash flow was a major concern. While credit guarantees and liquidity measures had been taken by the central government, transmissions were happening through the bank but needed to be expedited. “The weighted average of the pending receivables of the MSMEs surveyed was between 2cr to 3cr, which includes receivables from the private as well as the public sector,” he said.

With regards to supply chain, while movement of goods transport had been allowed, there were issues related to raw material availability and finished goods delivery as parts of the economy were still under red zone in Mumbai and Pune, Girbane said.

On the labour front he said, 40 % of the companies had labour issues. “The government needs to ensure that the employment bureau gets more support and prominence so that workers will find it easier to join industry as well as help facilitate the return of the migrant workers with transport and health care,” he said.

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