MSME hubs in S India struggle to restart business
ERNAKULAM: In recent months, MK Hamsa, whose firm Southern Plywoods makes furniture for small-time businesses across India, partially shut down his Perumbavoor factory due to the pandemic.
As smaller businesses in south India strive to restart factories amid a further easing of curbs last week and removal of interstate travel barriers, some key challenges remain. These include labour shortages, transportation, debt pile-up and a credit crunch.
In Kerala’s Perumbavoor town, Hamsa’s biggest problem is that most of his workers are from 3,500km away, in Assam. “Last week, I brought back 12 workers to Kochi by flight. It cost me around ₹6,000 a person. They are undergoing a 14-day quarantine, and I am taking care of their expenses. Given the cost, I don’t know if I will be able to get back more workers,” said Hamsa. “Locals in Kerala will not work at the low pay of migrant workers. My orders are picking up, and I need to restart production.”
Manufacturing hubs across the South are staring at huge costs. These small factories are built on the back of migrant workers from northern and eastern states. When the pandemic struck, millions in distress set off on long journeys home in independent India’s biggest domestic migration. Now, the owners are doing everything they can to persuade them to return to work. Some are booking flights, many are buying seats on coaches, and everybody is praying for the resumption of train services.