Sunday December 8, 2019
Home Business PM Narendra M...

PM Narendra Modi’s Demonetisation Move continues to Hurt Local Traders in Delhi with 50-90 Percent dip in their Businesses

These traders have not yet adopted the modern practice of transaction, the online payment facilities

0
//
Representational image. Wikimedia

New Delhi, November 23, 2016: Business activity in the bustling markets of Old Delhi has slowed down as a fallout of the demonetization that continues to hurt the local traders even after two long weeks.

While malls and big showrooms are said to have picked up business after the initial slump, small and medium level traders in local markets are still facing 50-90 per cent dip in their business.

NewsGram brings to you latest new stories in India.

The reason — these traders have not yet adopted the modern practice of transaction, the online payment facilities.

Most of these traders in Chandni Chowk and surrounding markets do not have online payment facility, which drives customers away, said Chandni Chowk Sarv Vyapar Mandal’s General Secretary Sanjay Bhargava.

“Despite strong competition from malls and e-commerce portals, these local traders so far had managed to retain and grow their customer base,” Bhargava said.

[bctt tweet=”Some traders have started using e-wallets to attract customers.” username=””]

“However, ever since the note ban, customers are avoiding shopping at the local markets because they have insufficient cash. And local traders lack online payment facility,” said Bhargava.

Pankaj Manocha from Chawri Bazaar, a wholesale trader in paper who traditionally deals in cash-based transaction, said the paper mills stopped the supply of paper as the demand in the retail shops had gone down.

“Neither customers have cash to buy paper products from us nor we have enough cash to place new orders with the mills,” Manocha said.

Go to NewsGram and check out news related to political current issues

New ways of payment have to be devised in order to thrive in the business, Manocha said.

Some traders have started using e-wallets to attract customers but their number is insignificant.

According to the traders, the clothing business is the worst hit by the demonetisation, despite November being the wedding season.

A wholesale trader said that the demonetisation of Rs 500 and Rs 1,000 currency notes on November 8 affected the traditional business transaction style.

“Earlier, transactions with factories, main distributors, even with customers were carried out using cash, which would be without bill, thus without payment of tax.”

“However, we have to make payment online or in cheques now, which is making the goods costlier. It has hampered our business. We will have to see how things turn,” said the trader, requesting anonymity.

Some traders felt that the situation would be normalised, perhaps in another six months, once they started using different modes of payment.

Look for latest news from India in NewsGram.

Mukesh Sachadeva, General Secretary of Delhi Hindustani Mercantile Association, said: “The current slowdown is due to cash crunch. Since footfall has gone down, the supply from factories and mills has reduced.”

“Now, we are adapting to the changes. We expect that all traders will start using cheques in six months’ time.” (IANS)

Next Story

Traders Body Wants Government to Seek a Ban on Amazon, Flipkart’s Festival Sales

“There will also be 10 per cent instant discount for Axis Bank debit and credit card holders and ICICI Bank credit card users,” it added

0
Amazon, New york
A delivery person pushes a cart full of Amazon boxes in New York City, U.S., Feb. 14, 2019. VOA

Just a couple of days after Flipkart announced the dates of its “The Big Billion Days” sale, the Confederation of All India Traders (CAIT) has written to the government seeking a “blanket ban” on festive season sales conducted by the e-commerce giant as well as its rival Amazon and other such platforms.

While Flipkart announced that its annual six-day sale ahead of Diwali and Dussehra would take place starting September 29, Amazon is yet to announce the dates for its annual bumper sale.

During these periods, the e-commerce platforms offer heavy discounts to lure customers as Indians tend to make major purchases during the festive season.

“By offering deep discounts ranging from 10 per cent to 80 per cent on their e-commerce portals, these companies are clearly influencing the prices and create an uneven level playing field which is in direct contravention of the policy,” the Confederation of All India Traders (CAIT) said in a letter to Commerce and Industry Minister Piyush Goyal.

CAIT said that the practice of deep discounts offered by various e-commerce platforms during the festive season goes against the foreign direct investment rules.

The traders body argued that that as these e-commerce platforms are “openly flouting FDI norms, a blanket ban on such festival sales should be ordered and an investigation should be conducted as to how these companies are flouting FDI norms and accordingly action should be taken against them.”

amazon, china, flipkart
FILE – A worker removes an advertisement billboard of Indian online marketplace Flipkart, installed along the roadside in Mumbai, India, Oct. 16, 2015. Amazon.com Inc. is concentrating on India and its competition, Flipkart. VOA

“…much contrary to the FDI policy, the e-commerce portals are deeply engaged in B2C business and the quantum of B2B business is almost negligible,” CAIT, which represents 500,000 merchants and traders in India, said in its letter on Friday.

“As per FDI policy, e-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field.”

Flipkart, in its announcement of annual sales dates said that “affordability is one of the key pillars for the Big Billion Days, with a focus on empowering consumers to fulfil all their shopping aspirations without compromising on their budgets.”

Also Read: Infosys Opens Technology Centre in Arizona, to Hire 1,000 Techies: Report

“This year, over 50 million Indians will have access to some form of credit, through Flipkart’s various loan options, including Cardless Credit, Flipkart PayLater and No-Cost EMIs on leading bank debit and credit cards,” Flipkart said.

“There will also be 10 per cent instant discount for Axis Bank debit and credit card holders and ICICI Bank credit card users,” it added. (IANS)