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4. Hundreds rendered jobless as 90 of 100 bangle factories down shutters in

Firozabad

Hundreds rendered
jobless as 90 of 100
bangle factories down
shutters in Firozabad
Aditya Dev & DM Sharma| TNN | Updated: Nov 17, 2016, 11.49 PM
IST

Out of 100 bangle factories

in Firozabad, 90 have downed shutters in the past few days due to cash
crush.

FIROZABAD: Hundreds of labourers have been

rendered jobless in Firozabad as 90 out of 100 bangle
factories here have downed shutters because of cash

crunch due to demonetization.

Industrialists have raised concern that as compared to
Rs two lakh needed to run the factories every day, they
have been able to manage only Rs 50,000 per day ever
since demonetization of old Rs 500 and Rs 1,000 notes
were announced. They added that the move taken by the
Union government has come as a double blow to them
as fuel worth Rs 10,000 to Rs 15,000 is being wasted at
each factory every day. They claimed that they have not
been able to pay the daily wage labourers in these
factories as the old Rs 500 and Rs 1,000 notes ceased
to exist as valid currency.
Rajkumar Mittal, president of UP Glass Manufacturing
Syndicate, said, "Demonetization has had a severe
effect on the bangle industry. We are facing multiple
problems in withdrawing money from banks. Banks are
not giving us more than Rs 5,000 to Rs 10,000 blaming

cash crunch. How are we supposed to run factories with

such a meagre amount?"

Cash crunch hits

Firozabad glass industry,
10 factories down
shutters
DM Sharma & Aditya Dev| TNN | Nov 11, 2016, 11.09 PM IST

PTI Photo

FIROZABAD/AGRA: As many as 10 big factories in

Firozabad have been shut in the past two days
due to shortage of cash flow, following the
demonetisation of big currency notes. Factory
owners have been unable to pay wages to
hundreds of labourers. There is a growing

resentment among industrialists who said the

currency ban, causing hassles to people and
putting their business in jeopardy, could have
been implemented in a better way.
Industrialists said if cash flow did not increase in
the coming days, more and more factories would
have no option but to shut down. "Ten factories
have closed so far due to non-payment to
workers. There is a need of around Rs 1 lakh in
cash per day to be paid to daily wagers. In some
factories, where work was going on till Friday,
workers had given an ultimatum," said Hanuman
Prasad Garg, president of the Glass Industrial
Syndicate.

Agra shoe industry faces

manpower crisis for want
of cash
Arvind Chauhan| TNN | Nov 19, 2016, 11.52 PM IST

AGRA: The Agra shoe industry, one of the largest

leather clusters in the country, is facing a serious
manpower crisis as the factory owners are not
able to arrange cash to pay the weekly wages of
their labourers. In Agra, there are 3.5 million
labourers working in the shoe manufacturing
units, while in unorganized small-scale units, the
number is above 8 million.

The situation is so grim that even chief

minister Akhilesh Yadav took note of it and
recently shot off a letter to Prime
Minister Narendra Modi. In the letter, the CM
drew Modi's attention to the plight of this massive
workforce and requested him to relax rules to let
them get their wages. According to Agra

Footwear Manufacturers and Exporters Chamber

(AFMEC), which accounts for 30% of India's total
shoe export at Rs 3,500 crore per annum, there is
no cash to pay daily labourers and the lack of
workforce was hitting the exporters hard.
Latest Comment
The problem is more with who always used only cash
transaction.Jag Mohan

Shahroo Moshin, vice-president of AFMEC, told

TOI, "We support the demonetisation move of the
central government to flush out black money. But
since our labourers are paid wages in cash and on

a weekly basis, we have not been able to pay

them. Besides, they do not have bank
accounts."Puran Dawar, president of the shoe
exporters' chamber, said, "We are facing a serious
crisis. Our businesses are severely hit. We request
the government to provide us a six months'
period to get bank accounts for all our daily
workforce, so that we can pay them through
bank."

The workforce in the unorganized sector is even

worse hit. The small-scale units which are spread
in several parts of the city have been hit by the
cash crunch. Notably, Agra's small-scale
manufacturers make 60% of all the shoes sold in
the country. According to Vishal Verma, a supplier
of shoe soles in Mantola area of the city, "My
earnings at present, which happens to be the
peak time of our trade, is nil. After Diwali till Holi,
the sale of shoes are high due to winter as well as
other festive occasions. But demonetisation has

hit us hard. We are not able to clear our dues, let

alone making new shoes."
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