New Delhi, Nov 17 (KNN) All kinds of traders be it wholesalers, retailers or street vendors are reporting massive dip in their businesses ever after the Government announced ban on currency notes of Rs 1000 and old Rs 500 notes. KNN caught up with the traders’ association to get their insight on the actual situation.

Chaos and confusion are still prevailing in the market hubs after demonetization of Rs 500 and Rs1000 currency notes. Traders are claiming a dip of 70 to 80 per cent in their business with minimal demand and less supply too.

As the traders mainly depend on cash transactions for business be it selling of goods or buying of goods from the wholesalers or dealers.

The wholesale traders are not accepting Rs 500 and Rs 1000 currency notes while the retailers and small traders don't have enough lower denomination notes to buy goods.

Arvind Singh, President, National Association of Street Vendors of India, told KNN, “Day to day business of vendors is falling and falling. Their business has just reduced to 30% of what they used to do.”

Singh said, “The repercussions of currency ban are not only on sale but the supply has also suffered massively. The suppliers who used to give goods on credit are now refusing to do so. There is no demand and minimal supply in the market.”

Singh said the vendors are literally stuck between the wholesalers and customers.

Talking about using electronic mode of payment by some vendors in some markets, Singh said, “In some places, which is very rare, two to four vendors are using PayTM for payments. Switching to electronic payment mode is not as easy as it seems for the vendors.”

He said it is just mere assumption that every vendor must be having a mobile or an account.

On bank accounts of street vendors, Singh said, “It will take a lot of time for the attitude of the bankers to change. Bankers don’t want street vendors or anyone to come and deposit small amounts like Rs 100 or Rs 3000 or so. Even under Pradhan Mantri Jan Dhan Yojana, the bankers opened the accounts but in some places they clearly said the loans won’t be given.”

Sharing his personal experience, he said in one of the fruit markets, where there used to be atleast 35 vendors, is now left with just 1 or 2 vendors. He said even they were saying that they are not getting the supply from the mandi.

Meanwhile, KNN also spoke to Ramesh Khanna, Delhi President, Confederation of All India Traders (CAIT).

Khanna said, “When demonetization was announced on November 8, then the traders were reporting dip in business. Now things are improving.”

He said the street vendors, since they sell goods of smaller value like Rs 50 or Rs 100 or so, are now doing little better with the improvement in availability of cash in the market.

Khanna added that slowly the markets are reviving. “Earlier 30% traders were using electronic mode to receive payment and 70% were dealing in cash. Now the traders using e-mode has increased to 40% and is set to increase more in future.”

He also said that CAIT has been calling for cashless economy since last two years. (KNN Bureau)