City suffered over 2k cr biz losses in 2 days’ unrest
Times of India | 30 August 2024
Kolkata: The city may have lost upwards of Rs 2,000 crore worth of business and earnings over Tuesday and Wednesday, when large-scale street violence and hooliganism forced many business zones to shut, partially or entirely.
Bengal has an annual gross state domestic product (GSDP) of over Rs 17.1 lakh crore that translates to a daily figure of a little less than Rs 5,000 crore.Kolkata contributes around 40% of the state figure, agrees a cross-section of business and industry, which means the city's daily business takeaway would be Rs 2,000 crore.
Every sector that contributes majorly to this figure — wholesale and organised retail (that may include a diverse range from leather to garments), jewellery, the hotel and restaurant business, transport — has suffered significant losses over Tuesday and Wednesday, making a big dent in the Rs 4,000 crore that Kolkata generates over two days. Almost every industry leader that TOI spoke to across sectors agreed that business was down by "over 50%, conservatively" on both days, making the two-day loss quantum a staggering Rs 2,000 crore.
A Nabanna march convened by Chhatra Samaj, an organisation floated on social media, created mayhem across large belts of Kolkata and Howrah on Tuesday and BJP's Bangla Bandh took care of Wednesday's business. Thousands of establishments in Kolkata's commercial and entertainment zones were either partially or entirely shut for much of these two days; even establishments that stayed open saw little business as the transport network, too, worked at a much smaller than usual scale.
Mid-week bandhs and disruptions could upset the business dynamics before Bengal's biggest festival and spending season, Merchants' Chamber of Commerce and Industry president Namit Bajoria felt. Bengal Chamber of Commerce fiscal affairs and taxation committee chairperson Vivek Jalan feared peak festive season sale would be "severely hit" if things did not get better.
The city's central business district, a large part of which turned into a battleground between cops and hooligans on Tuesday and was totally shut on Wednesday, was the worst-affected. The wholesale and retail outlets in central Kolkata alone might have lost around Rs 500 crore-Rs 600 crore worth of business on the two days, Confederation of West Bengal Trade Associations president Sushil Poddar felt. Kolkata's CBD includes several wholesale and retail markets in Posta, Burrabazar, College Street, Brabourne Road, Dalhousie, Chandni Chowk, Esplanade and New Market. "Almost 70% of the CBD's shops and showrooms were shut for two straight days," he added. CWBTA counts over 1 million traders across Bengal as its members.
The wholesale markets in Posta and Burrabazar cater not only to Bengal's needs but also many of the neighbouring states'. Posta is the biggest wholesale market for pulses, oil, potatoes and other edibles in the state. Movement of lorries carrying stock to different parts of the state was suspended on Tuesday and Wednesday.
"We have lost business of Rs 200 crore, according to conservative estimates, on Tuesday and Wednesday. Lorries loaded with pulses, rice, oil, potato and other food items were stranded in Posta for two days," Posta Bazar Wholesalers' and Retailers' Association secretary Vikas Singhania said.
Organised retail trade too suffered a body blow. "Business was down by at least 50%," Manmohan Bagree, vice-president of South City Projects that runs the city's largest mall, said. "Puja sales start by the third week of August in other years," he added.
A similar lament came from the bar and restaurant industry as well. Business was down by 70% on the two days, Hotel and Restaurant Association of Eastern India (HRAEI) president Sudesh Poddar said.
The textile industry in the city incurred losses of around Rs 100 crore, Chamber of Textile Trade and Industry president Mahendra Jain said. The jewellery industry suffered even more; Swarna Shilpa Bachao Samiti secretary Samar Dey said business on these two days was only around 10% of normal.
Ezra Street, the state's biggest wholesale and retail market for lights, electrical wires, fittings and appliances, was shut on Tuesday and Wednesday. "I lost more than 75% of my usual sales," Bhavik Jain, one of the biggest retailers of lights and electrical fittings, said.
Similar news came from the transport sector, with vandalism fears keeping most commercial vehicle owners off the street on Tuesday and Wednesday. "I did not receive a single assignment on the two days. The vehicle was just parked at the lot for two straight days," rued goods vehicle driver Amit Singh.