Kanpur leather industries have been asked to shut down by the C. M. of UP because of the upcoming ‘kumbh mela’ and the associated festivities that are supposed be held in the year 2019.
This is a major blow to the economy of the country general, as these leather industries alone are responsible for the annual profit of 120 billion rupees. This closure, which is to be in affect from 15th of December to 15th of March, has come in a very wrong time as the value of Indian currency is currently running low, which means, the exporters just lost the opportunity to earn more.
The Kanpur leather industries export 60 billion rupees worth leather to gulf and European countries alone. This shut down is going to majorly affect not only the present of the industries, but also the future. India is in constant competition with Bangladesh as well as Pakistan, as both these countries are known for quality production of leather. This shutdown might end up in India losing its foreign customers to its rivals.
In case the shutdown order stays, the tanneries won’t be able to recover from the losses as it needs to close down two weeks before the time period. It can reopen only after a span of 15 days, which takes the total shutdown duration to 4 months. The tanneries will die by then.
Not only will the business be affected but also the employees will lose their job. This means over 1,00,000 people going jobless for the span of 4 months. This is alarming. The local businessmen have decided to take this matter to higher authorities.