An article in short about the overall insight of
markets in Delhi post demonetisation.
My next door neighbour
had been to Dubai to visit their son on a visa of three months on 21 October. Being
an elderly couple all in the society have been in close contact with them. I was
surprised to see them on 17th November back home. When enquired as
to what happened, they came so early; they said, “After the announcement of
Modi regarding demonetisation, we were forced to come back…!” I felt
sorry for them as this time both uncle and aunti were much excited to visit
their son in Dubai as there had been a new member in the family.
It is not only them who
had to curtail their trip, there are many who have been in deep trouble after Rs.500
and Rs.1000 notes had been announced to be discontinued as legal tenders
from 9 November 2016. Daily news papers since 9/11 are regularly
updating us regarding the deaths of people in queues of ATMs. The situation is
pathetic and troublesome for the people, with no choice!
All this made me to
personally visit few places in Delhi to understand the reality at the ground
level. I started my research from the Malls which are mostly crowd
bulging. It was really surprising that the crowd was thin. Anyway I went to my
choice restaurant where the owner is known to me due to regular visit. He did
welcome me but the regular smile was missing. When I enquired for the dull
welcome he suddenly busted out, “Saheb, there is a down graph in business, I am
not able to fetch the rent of this place in this month”. I really felt sorry
for him; still thinking that the eatery business in most promising and
profitable, but has really the footfall has fallen so drastically that business
has fallen to 85%. This made me to be more inquisitive regarding effects of
demonetisation. I walked around the mall talking to many shop keepers in this
regard. Not even a single person around the mall had been happy regarding demonetisation,
all advocated that there is fall in business. No matter that they have been
digitally advanced for sometime now, but low footfall has affected them at
large.
This feedback was
shocking for me as I had never thought of negative effect of demonetisation. My
next destination was Azadpur Mandi–Asia’s biggest vegetable and fruit market–where loaders and porters are
normally to be seen busy earning daily bread. This time I saw many sitting
ideally. I asked one of them as to what is the effect of demonetisation. It was
like I had ignited a bomb, many flocked around me thinking that I am a journalist, in chorus, “Saheb, do joon ke
rooti bhi kamana mushkil hai!” (Mister, not able to earn two meals a day
also). The rate of unloading a sack of onion was Rs.20 before but in the
present times the rate has gone down to Rs. 13 per sack. Avnish a loader, “I
used to earn around Rs. 200 per day, but now I am not able to earn even Rs. 100”.
When I asked where is the crowd, he said, “Most of the loader have gone back
home because of no work, the people are not coming to market”. Rajender Sharma,
president of the Federation of Fruit and Vegetable Traders' Associations, said,
"Not just have costs of vegetables fallen, deals have fallen by 20-30 per
cent, most clients are purchasing over credit which is a system of this market.
Around 80 per cent of my business a month ago has been on credit, but payments
have to be made to supplier who is not accepting old currency and the new is
nowhere to be seen in bulk to make payments." Other shopkeepers admitted
that because business was down, ancillary work has been affected.
It's not just wholesale
and flea markets like Chandni Chowk, Sarojini Nagar and Lajpat
Nagar, however demonetisation has soberingly affected Delhi's world
class markets as well. The reasons, be that as it may, are distinctive. The
upscale Khan Market–which was recently positioned as the 28th
costliest retail market in the world by Cushman and Wakefield–has lost around 50 per cent business since November 9.
Connaught Place
in Lutyens' Delhi has lost 30-40 per cent deals in one month since Prime
Minister Narendra Modi made the declaration. What's more, South-Ex Market,
which has a few extravagance brands, has lost around 20-25 per cent income in a
similar time. These figures were accounted for by the individual market associations.
Be that as it may, the
reason for VVIP card-wielding clients moving in the opposite direction of these
shopping edifices is not the same as those referred to behind the incomplete
shutdown of Chandni Chowk, Khari Baoli and Sadar Bazar.
The purpose for this is
any purchase above Rs 2 lakh must be joined by outfitting the PAN card,
which is likewise imprinted in the bill. This is consequently answered to the Income
Tax (IT) division, and on the off chance that IT sleuths discover one's
buys surpassing their enrolled wage, a notice might be sent at his or her
doorstep at whatever time.
“On one side, suppliers
constrained us to make payments for stock provided before while purchasing
power of the shoppers recorded exceptional cuts bringing about tremendous money
related misfortunes. The extreme outcomes of the impact have additionally been
felt in Khari Baoli–Asia's largest food and grocery markets–that have seen thin business nowadays," said Pradeep Gupta, a
dealer from Khari Baoli, the biggest dry organic product market of Asia.
Post demonetisation,
the money emergency has prompted to a complex ascent in costs of fundamental
family unit items amid past one month. With almost Rs 7 per kg increase in the unorganised
market and Rs 10 per kg increase in the organised one, wheat prices have
seen most escalation amid the period. Prior, a 20-kg acket of wheat was
accessible for Rs 260-300 yet now the cost has gone up to Rs 340 in the unorganised
market and Rs 350 to Rs 440 in the organised business sectors like Big Bazar,
Reliance Fresh and other retail outlets. Costs of mustard oil, refined and
different oils are likewise being sold on uplifted costs as discount markets
have recorded an expansion of Rs 10-20 per litre. "Prior, mustard oil was
accessible for Rs 100 a litre in the discount advertise however after the cash
boycott, it has gone up to Rs 120. The same is accessible above Rs 145 in
retail shops," said Dinesh Gupta, a trader from a similar market.
To the extent costs of pulses
are concerned, the majority of the things have recorded a climb. The most
exceedingly terrible influenced are gram (chana dal) as its cost has shot up to
Rs 125 per kg from Rs 85-100 in the wholesale market. A similar item is
accessible at the rate of Rs 140-145 in the retail market. Rates of
Bengal gram has additionally gone up from Rs 90 a kg to Rs 104 in wholesale
markets. "In the midst of the emergency, the price of pulses has shot up.
The more terrible is that it will record additionally increase as a few
merchants may start hoarding," said Dinesh Kumar, a dealer from Naya
Bazar market. Desperate clients and retailers going to different mandis are
likewise having an extreme time as they have been battling hard to meet their requirements.
A majority of them have been requesting goods in lesser quantity bringing about
lesser market exchanges. A few have even been requesting products on credits
from wholesalers also. Correspondingly, a larger part of family units have been
looking for sustenance things using a credit card from retailers prompting to
the emergency.
The impacts of
demonetisation on small traders and manufacturers in the national capital were discussed
in a meeting of Chamber of Trade and Industry (CTI), wherein agents
communicated their apprehensions over the move. Representative from grocery,
jewelry, transport, garment, property, and manufacturers raised the issues
confronted by them and stretched out recommendations to meet the difficulties
of the circumstance set apart by scarcity of usable notes and new banking money
rules. The gathering stretched out different proposals to handle the
circumstance, including increase in the deposit limit from Rs 2.5 lakh to Rs 10
lakh in view of interests of small traders, said Brijesh Goel, national
convener of CTI. A few traders likewise recommended withdrawal point of
confinement to be upgraded from Rs 10,000 to Rs 50,000 too.
While some proposed
expansion of tax exemption limit utmost to Rs 10 lakh and cutting down the most
extreme tax rate to 25 per cent, he said."All the proposals will be talked
about in future," he said. The meeting also accentuated on the need to
shield the interests of the traders and manufacturers. The CTI office bearers
reported a helpline number for the brokers who require assistance from experts
including advocates, contracted bookkeepers and specialists.
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| CNG pump reasoning for not accepting card payment. |
While in Chandni Chowk I
saw huge lines on ATMs. Police deployed to control the crowd. I was told
that the crime rate in Delhi has fallen after demonetisation. I
asked the person so demonetisation is the sole reason behind crime rate
decline, to which he proudly said, “yes…!” I simply replied then I think the
government should conduct this demonetisation on yearly basis to control the
crimes. There are many who have habit to connect things to anything. Government
has itself paved way for organised crimes by demonetisation. I was also told
that police has announced that if the people are spreading rumours on social
media they will be punished under section 505 IPC. I am surprised that the
same thing is being done by the government on daily basis, what about these? The
queues have gone less, people are happy with demonetisation, all the Black Money
will be flushed out by demonetisation, opposition is not happy as they did not
get time to protect their black money, etc. new flashes by the government.
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| Most of the pumps are dealing only in cash payment. |
The government
is promoting Cashless Economy but the reality at the grass root level is
that most of the petrol pumps on the highways are only dealing in cash, thus
tossing away Digitalization—the dream of Modi.
Today the Delhi Pradesh
BJP has announced one laddoo per family for their patience on demonetisation.
Shame of them for many died in queues for their own money while standing in ATM
line and BJP is bragging about success. Height of fooling the masses!
Declaimer: The views
are sole discretion of the author...
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