Middle East crisis hits Kashmir trade, KCC&I raises MSME concerns with Div Com

Srinagar, Mar 30: A delegation of the Kashmir Chamber of Commerce and Industry (KCC&I), led by its President Javid Ahmad Tenga, today participated in a meeting chaired by Divisional Commissioner Kashmir, Anshul Garg, to deliberate on pressing issues affecting Micro, Small and Medium Enterprises (MSMEs), and the other issues confronting the trade and commerce in the Valley.

During the meeting, President KCC&I highlighted that the ongoing Middle East crisis has severely impacted Kashmir’s trade and industry.

He stated that many MSME units, artisans, and exporters dependent on Gulf countries have been adversely affected by disruptions to demand, supply chains, and payment cycles, leading to financial stress and uncertainty.

The Chamber also raised serious concerns regarding liquidity constraints arising out of the delayed realisation of export proceeds, particularly from Middle Eastern markets. KCCI urged the administration to facilitate extension and relaxation of pre-shipment and post-shipment credit facilities to support exporters facing cash flow issues. It further recommended suspension or deferment of bill crystallisation norms in view of the extraordinary circumstances and requested that exporters be provided adequate time to recover payments and stabilise operations.

KCCI has already taken up the matter with the Director General of Foreign Trade (DGFT), Luv Aggrawal, on 25th March 2026, regarding the crisis in the Middle East and its implications on exports.

The delegation strongly emphasised the need for strict implementation of the provisions of the MSME Development Act to safeguard the interests of MSMEs. It raised concerns over delayed and defaulted payments, which have aggravated the liquidity crisis and affected the sustainability of businesses.

KCC&I suggested that a structured mechanism be put in place to monitor and address deferred payments, and that regular review meetings be convened at fixed intervals with all stakeholders to ensure the timely resolution of pending dues and the effective implementation of the MSME Act provisions.

The meeting was attended by KCC&I  Executive Committee members, Ashiq Hussain Shangloo and Gowhar Maqbool, who is also the president of Kashmir Hotels and Restaurant Owners Association (KHAROA).

During the interaction, concerns were also raised regarding the shortage of commercial gas cylinders affecting hotels and restaurants, with emphasis that the hospitality sector should not suffer due to supply disruptions ahead of the tourism season.

The Divisional Commissioner assured that an adequate supply of commercial LPG cylinders is available and that necessary steps are being taken to ensure uninterrupted availability.

Furthermore, in view of the ongoing runway repairs at Srinagar Airport, the delegation requested that alternative connectivity between Srinagar and key destinations such as Jammu and Delhi be ensured, and that the number of train services be increased to facilitate smooth and convenient travel for tourists.

Divisional Commissioner, Mr Anshul Garg, gave a patient hearing to all issues raised and assured that they would be addressed on priority. He reiterated the administration’s commitment to supporting MSMEs, exporters, and the overall business ecosystem in the region.