The National Restaurant Association of India (NRAI) has requested central and state governments to bail out the food and beverage industry, saying the sector is reeling under huge losses because of the lockdown to prevent the spread of the coronavirus.
The restaurant body has written to Finance Minister Nirmala Sitharaman for a bailout package, so that the industry and its employees survive the virus onslaught.
“We, as an industry operate with a very high proportion of fixed operating expenses, which makes our business very high-risk even in case of moderate revenue fluctuations,” NRAI president Anurag Katriar said.
The industry, with an annual turnover of Rs 4 lakh crore and employer of close to 7.3 million Indians, was staring at a complete loss of revenue in the short term and a 50% reduction in the long term, he said.
The association said that it was hoping for a deferment of all dues to the various departments, moratorium on bank loans and restoration of input tax credit on GST (Goods and Services tax). It has also sought funds to cover the cost of the marginal employees in this sector.
The NRAI had on March 18 appealed to restaurants to shut down dine-in services to protect customers and employees from the virus, which is known to have infected at least 415 people in Indian and killed seven.
With the government ordering lockdown of 75 districts in the country, the restaurant business has been crippled.
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