Bhubaneswar: Retail shops in the capital have witnessed a massive drop in business and many of them are unable to stock adequate quantity of goods following the scrapping of old `500 and `1,000 notes.
Shops which give credit to regular customers are also worried about timely repayment as the cash crunch shows no signs of abating.
“Some customers have informed that they will make payment in higher denomination notes and the balance can be adjusted next month. However, others have requested some more time for repayment. Actually, credit given to regular customers is the only factor that is helping me in surviving demonetisation. But, if cash crunch continues then I will be in trouble,” said KC Mohanty, a retail shopkeeper in Sahid Nagar.
Some retail shopkeepers have decided against keeping much stock this month as they are unable to pay the wholesalers. Moreover, the customers, too, do not have much cash and the new `2,000 notes have resulted in shortage of change as there are not enough `500 notes.
“I usually do not give much credit. So I have faced a massive drop in business. I still have enough stock for at least 20 days. But, if I am unable to clear the stock before December 15, I will not be able to pay the wholesaler,” said Ambaresh Patnaik, a retail shopkeeper near Trinath temple in Laxmisagar.
But, the worst-hit by demonetisation are those dealing with perishable goods. They deal in only cash while buying as well as selling items like vegetables, eggs and other food items.
“Most customers have no change with them. So we are requesting them to buy in large quantities. However, if they come with `2000 note then we are helpless. We do not keep a large stock as vegetables are perishable. We have also lost some of our regular customers to super markets which have e-transaction facilities,” said Pabitra Barik, a vegetable seller at Jharpada vegetable market.
Similarly, truck owners also claim that they have faced 30 to 40 per cent drop in business in November. They point out that companies and agents are not sending goods in large quantities since retailers have a lot of unsold stock.
“Our business has been adversely affected and the weekly withdrawal limit from bank accounts is not sufficient for us,” said Niranjan Praharaj, president, Bhubaneswar Goods and Transport Association.
Most retailers are worried as it is unclear when the market will have enough currency notes. The withdrawal limit imposed by the Centre and RBI has affected the purchasing power and also compelled some customers to migrate towards malls and bigger shops where digital/ e-payment is accepted.
Post News Network
