MSMEs shutting down units for 4 days a week due to cash crunch: AIA

Amritsar, Dec 17 (KNN) The Amritsar based MSMEs have handed over the keys of their units to the Deputy Commissioner (DC) here to protest against shortage of cash due to demonetisation on Wednesday. 

Before the demonstration, they took out procession which was led by Amritsar Textile Processor Association. They even submitted a memorandum to the DC.

It has been found that the cash crunch has resulted in industries staying shut for four days a week and demonetisation has majorly affected the MSME sector which majorly depends of liquid money for transactions, logistics, wage payments etc.

Meanwhile, talking to KNN India, Gurdip Singh, President, Amritsar Industries Association said that there is no such problem for us but don’t know about future.

“I don’t think that we were affected by demonetization till now, but we might come to that stage where we will also face critical problems,” said President, Amritsar Industries Association.

 Singh said that it is obvious that business is affected on large parameters, workers are leaving the industries due to payment crunches which has bad effects on MSMEs.

“Business is obviously affected by the demonetization” said Singh (AIA).

The textile industry laid off over 10,000 workers and units were forced to stay shut for up to four days in a week due to the liquidity crunch following the demonetisation. The production at processing units in Amritsar reduced to 25 per cent. (KNN/RAS)