Currency Switch Impact | Money crunch halted 90 % work in Firozabad glass industry


Disruption of cash flow has desired the glass industry of  Firozabad. Up to 90 per cent of work has been affected, say industry insiders. There are about 200 factories in Firozabad of which 125 units manufacture bangles and rest are making glassware, bottles etc. Every unit needs Rs 1 to 1.50 lakh to disburse daily […]


glassDisruption of cash flow has desired the glass industry of  Firozabad. Up to 90 per cent of work has been affected, say industry insiders.

There are about 200 factories in Firozabad of which 125 units manufacture bangles and rest are making glassware, bottles etc. Every unit needs Rs 1 to 1.50 lakh to disburse daily wages. But cash crunch is causing hassles to people.

Raj Kumar Mittal, Sr Vice President, All India Glass Manufacturers’ Federation said, “There should be better implementation.  It is a good move but has adversely affected small businesses in country. Here in glass industry, labour get payment every Saturday. Now how will pay them? Rs 100 notes are not easily available in market and labour is not ready to accept 2000 denomination note. So labour are worried that where to spend as no shopkeeper is accepting it.”

Mittal said, “More than 50 per cent labourers don’t have bank accounts. Moreover, in some areas, there is no banking facility. They take wages in cash. There are about 4 lakhs labours in glass industry. They are losing work as factories are shutting down.  More than 10 factories have been shut in last few days due to cash starved situation. ”

“Industry is losing about Rs 2 crore daily as many export order has been cancelled. Government should provide special treatment to MSMEs as well as more limit of withdrawing. This sector provides maximum employment to unskilled labour. We are planning to meet Union MSME Minister Kalraj Mishra for better treatment as industry is on verge of collapse”, Mittal added.

Industry expert says that banks are not allowing withdrawal. Payment of products already sold is stuck. Except in automated factories, work is halted everywhere from glass to bottle works.

Bangle industry which works in only one shift and does not operate in night is more hard-pressed as workers exchange their old notes in long queues in during bank’s working hours.

Sanjay Agarwal, U. P. Glass Manufacturers’ Syndicate, Firozabad said, “First, this is unorganized and labour based industry.  Second, our product is not in priority sector. So if there is less money in market, people will think of bread and butter first. That is why, our market has been declining day by day. Half of the factories have been closed and others are suffering too.  Sector is fully cash strapped now. There could have been better execution. Situation is getting worst in small cities as banking system is not good there.”

“As this is fully in central government’s hand, we cannot even approach local or state authority for any problem. In glass industry, 20 per cent labour comes from outside on daily basis. They need urgent payment in the evening. If we are unable to pay, they will not come. So from labours to factory workers, everybody is affected due to this major decision.” Agarwal added.

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