Factories located on the Morang-Sunsari Corridor have suffered losses totalling Rs15.95 billion during the past 105 days due to production disruptions caused by the Tarai agitation and the Indian embargo, the Industry Association Morang said.

The factories have had to shut down not only due to the banda called by the protestors but also because of a shortage of raw materials as transportation has been crippled. Manufacturers have not been able to ship their products to market either, adding to their losses.

Containers from India and third countries have been stranded en route, forcing traders to pay heavy detention charges. Shiva Shankar Agrawal, president of the association, said that traders had so far paid a total of Rs360 million in detention charges for the 1,200 trucks stuck at Kolkata.

Similarly, they have had to pay container charges totalling more than Rs360 million. Taking into account the bank loans used to buy the 1,200 trucks, the losses would reach Rs8.82 billion, according to Agrawal.

“Banks have invested Rs100 billion in the industrial corridor,” said Agrawal. “If we calculate the interest on the loans for 105 days, it would amount to Rs3.50 billion.” According to him, factories have to pay Rs34.5 million as the electricity demand charge during the strike period.

More than 50,000 people are directly employed in the 500 factories in the corridor. If their wages are calculated at the rate of Rs500 per day, the cost would total Rs2.62 billion for the 105 days the factories have been out of operation.

According to the association, detention charges in Kolkata have accumulated to Rs22.5 million over the period.

Rajendra Raut of the Morang Trade Association said that they had been incurring heavy losses due to the electricity demand charge and heavy bank loans. Industrialists and traders said they had been paying the staff salaries even though no work was being done.

Most of the product brands are losing their value, and overseas export orders for various products are being canceled. Some factories that have been operating in the night are having a hard time getting diesel for their generators.

Industrialists fear that they may lose their overseas markets if the situation continued for a few more days. They complained that the quality of the raw materials and the finished goods had dropped sharply as they are not reaching their destinations on time.

Most factories in the industrial corridor produce various food items like rice, pulse, edible oil, flour, ghee, noodles, beaten rice, biscuit and chocolate. “Entrepreneurs have become frustrated by the situation,” said Agrawal. “Moreover, market prices are skyrocketing due to the increased cost of production.”

The association said that the current political and economic instability would result in capital flight, low revenue collection, unemployment, uncontrolled inflation, low investment possibilities and labour shortage.

Meanwhile, a delegation from the association called on Prime Minister KP Sharma Oli and asked for relief on the electricity demand charge and bank interest.

The team also urged the government to allocate funds for national pride projects and accord priority to the construction of East-West Lokmarg and renovation of bridges and roads.