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Production of Sunsari-Morang Industrial Corridor Limited to 40%

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Production of Sunsari-Morang Industrial Corridor Limited to 40%
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May 21: Due to the implementation of prohibitory orders to curb Covid-19 infection, 40 percent of the industries in Sunsari-Morang Industrial Corridor have been shut down. The restriction has been actively implementation since the past three weeks. Meanwhile, the production of the industries that are still operating has also declined by 40 percent.

While the production of industries that produce essential goods is 80 percent, other industries are producing a limited amount of products. Industrialists have claimed that if the government fails to address the problems of workers and market management, all of the industries would shut down within two weeks.

Sunasri-Morang Industrial Corridor comprises 500 industries of all scales. Fifty thousand workers are employed in these industries. Closing of 40 percent industries means complete closure of 200 industries. This means approximately 20 thousand workers have lost employment and are being compelled to stay at home without any source of income.

Central member of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Rajendra Raut informed that the industries in operation have dropped their production to less than 50 percent.

“The industries requiring oxygen for operation are completely shut down while other industries as well have not been able to operate properly due to the closure of the market,” said Raut.

In normal conditions, the industries of the corridor used to produce goods worth Rs 500 million on a daily basis..

Altogether 50 industries including those that produce medicine, food grains and oxygen are still in operation.

Export and import of the goods have also been greatly affected due to the closure of the industries.

Suyash Pyakurel of Morang informed that less than 50 percent of industries are in operation in the Corridor. Due to the closure of the market, the consumption of manufactured goods has decreased and the existing industries are also cutting production by up to 60 percent.

He also said that the state needs to take necessary measures to save the industry. He urged the government to bring a bigger relief package than the previous year as bank interest, salary of employees and other expenses will continue even if the industry is closed. According to the President of Morang Trade Association, Prakash Mundada, production and consumption have both declined.

 The industry has cut production by 60 to 70 percent. As production declines, so does the employment of workers. He said that large industries in the corridor will also be closed within the next one week.

 

 

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