Labour-intensive industries in Thoothukudi district have been affected by demonetisation of high-value currency notes, as they are not able to pay wages to their workers.
The traditional safety match industry, though largely mechanised, relied on labourers, J. Devadoss, secretary, South India Match Manufacturers’ Association, Kovilpatti told The Hindu on Wednesday. Around one lakh workers had been relying on this industry. Wages would normally be paid once a week based on productivity. The cash withdrawal allowed after demonetisation was inadequate to pay wages to labourers.
The cash withdrawal had been limited to Rs. 24,000 for a week for savings account holders and Rs.50,000 for current account holders. The ceiling should be increased to facilitate payment of salaries to employees. Presently, the labourers had been managing their day-to-day expenses with Deepavali bonus and last month’s salary, Mr. Devadoss said.
Moreover, traders from North India were reluctant to place orders for match boxes as they were used to cash transactions. Movement of finished goods to Uttar Pradesh, Bihar, Madhya Pradesh and Odisha had come to a halt in the last one week, he said.
Salt industry had also been facing a setback as stocks of manufactured salt could not be transported. According to A.R.A.S. Dhanabalan, secretary, Thoothukudi Small-Scale Salt Manufacturers’ Association, salt production was stopped with the onset of monsoon in October-end. Normally, there would a demand for salt during rainy season, but not this year, he said. Despite achieving high production this year, the product could not be marketed because of demonetisation.
M.S.P. Thenraj, president, Thoothukudi Salt Traders’ Association, said there was a slowdown in the trade as employers could not pay wages to labourers engaged in packing and loading.
Since lorry drivers and attendants could not be paid, only 20-30 per cent trucks were being operated, that too on short routes, S. Varadharajan, secretary, Tuticorin District Container Truck Owners’ Association, said. Though truck operators had been exempted from paying toll until November 18 and demonetised notes were valid till November 24, the lorry crew needed money to buy food.
Getting change dificult
The Rs. 2,000 notes could not be given to them as they would find it difficult to get change. Had the authorities released new Rs. 500 notes earlier, this crisis could have been better managed, he said. Many ice plant owners were also feeling the pinch as suspension of mechanised boat fishing operations had forced them to stop production.
“Labourers are managing their day-to-day expenses with Deepavali bonus and last month’s salary”
