Hotels empty, fruit rotting: Double whammy brings Kashmir economy to its knees

Srinagar, Sep 5: Kashmir’s economy is facing one of its toughest phases in the current years as its two mainstay sectors—tourism and horticulture—have both been badly hit, leaving thousands of livelihoods in jeopardy and revenue streams crippled.

Tourism, a vital driver of Kashmir’s economy, was dealt a severe blow in April when a terror attack on tourists at Baisaran in Pahalgam triggered widespread panic and cancellations. The industry, which had been showing signs of recovery after several difficult years, has not been able to bounce back since. While the sector was struggling to recover from this setback, the horticulture industry—considered the backbone of Kashmir’s economy—has now been devastated by the prolonged closure of the Srinagar-Jammu National Highway, which has remained shut for more than a week.

Hundreds of trucks carrying fresh fruit are stranded along the highway, and perishable produce has begun to rot. Preliminary estimates suggest losses worth over Rs 500 crore so far, a figure that is climbing with every passing day.

President of the Kashmir Chamber of Commerce and Industry (KCCI), Javid Ahmad Tenga, painted a grim picture of the crisis. “Tourism was already reeling after the Pahalgam incident, which created widespread fear among visitors and forced thousands to cancel bookings. This has broken the back of our tourism industry. Hotels, houseboats, transporters, and handicraft sellers are all facing severe distress. Just when we were hoping for recovery with the autumn season, the closure of the Srinagar-Jammu National Highway has struck another heavy blow, crippling horticulture—the backbone of our economy."

"Fruit worth hundreds of crores is rotting in trucks, while growers and traders watch helplessly. The absence of a contingency plan is unacceptable. We urge the administration to immediately restore alternate routes such as the Mughal Road and to chalk out a long-term strategy so that the Valley is not held hostage to road closures every year,” he said.

Bashir Ahmad Basheer, Chairman of the Kashmir Valley Fruit Growers and Dealers Union, warned that the horticulture sector, which sustains lakhs of families, is staring at unprecedented losses. “The losses are piling up every hour. Our apples, pears, and plums are stuck in trucks with no movement for days. Perishable fruit does not wait—it rots. Already, we estimate over Rs 500 crore in losses, and this could easily double if the highway is not cleared soon. Thousands of growers depend on this single harvest for their livelihood. If this situation continues, many small farmers will be forced into debt traps. We have repeatedly pleaded with the government to allow the Mughal Road for full-fledged truck movement, but our requests are ignored,” he said.

The crisis has compounded the woes of hoteliers, who were already reeling from the fallout of the Pahalgam attack. Ghulam Hassan, a hotelier in Pahalgam, said the shock was immediate and devastating. “The attack in April destroyed the entire season. Overnight, tourists cancelled their stays. We had invested heavily in renovations, staff, and marketing, but after that incident, rooms have remained empty. This is not just about hotels—it affects taxi drivers, pony-wallas, shopkeepers, and even the youth working as guides. The highway closure has only worsened things because even basic supplies for hotels are stuck on the road. At this rate, survival is becoming impossible,” he said.

Fruit traders also voiced despair over the mounting losses. Mohammad Ashraf, a trader said the damage was not limited to growers alone. “We are being pushed to the wall. I have truckloads of apples stranded on the highway. By the time they reach Delhi or Mumbai markets, they will be half-rotten and fetch throwaway prices. Traders like us are losing both capital and credibility. If nothing changes, many of us will not be able to recover financially this season,” he said.

Economists say the double blow has created a cascading effect across the Valley’s fragile economy.

As losses mount and frustration grows, business leaders and stakeholders are unanimous in their demand: the government must act swiftly to restore the highway, operationalise alternate routes, and provide relief to affected sectors. For now, however, Kashmir’s economic pulse remains weak, with its twin lifelines—tourism and horticulture—struggling for survival.