Wholesale chaos at big mandis

AN ASSOCIATION OF TRADERS WILL SEEK LEGAL OPINION ON THE IMPACT OF THE MOVE ON THEIR BUSINESSES

NEW DELHI: Delhi traders have called a meeting to discuss the impact of the government’s decision to demonetize ₹500 and ₹1,000 notes on Thursday. Members of the Chamber of Trade and Industry (CTI) also roped in a panel of lawyers to decode the implications that the plan would have on their businesses.

“On Monday, traders were confused if whether they should open their shops or not. Businessmen support Centre’s initiative to cleanse the economy of black money, but there is uncertainty in the minds of traders. In Thursday’s meeting, the traders will chalk out a future strategy,” said Brijesh Goyal, CTI convenor.

Vegetable supply was hit as local vendors who go from door to door could not buy stock from wholesale hubs (mandis).

Traders at Azadpur — the biggest wholesale vegetable and fruit market in Delhi — said retail traders could not buy stocks as wholesalers refused to accept ₹500 and ₹1,000 notes and lower denomination currency was in short supply.

“They were not accepting ₹500 and ₹1,000 notes. Whatever I bought yesterday has not been sold. People do not have change to buy vegetables. All our stock will go waste,” said Krishna, a local vegetable vendor.

Florists said they may have to shut shop until new notes are circulates. “I haven’t sold a single flower since last night. These are perishable commodities. People do not have cash to buy vegetables, how will they buy flowers? We are planning to keep the shop shut for the next two days,” said Prakash, a florist in Sarojini Nagar.

The Centre announced demonetization of Rs 500 and Rs 1,000 notes, starting Tuesday midnight.

Rajkumar Bhatia, general secretary, Chamber of Azadpur Fruits and Vegetables Association, said wholesale business was hit as regular vendors returned empty handed. “The situation is expected to remain the same for a few days,” Bhatia told HT.

However, traders who deal with bulk stocks remained unaffected as they purchase on credit.

“The new rules will certainly delay the money transaction. Currently, it is generally done in a cycle of 10-12 days. The cycle could get longer this time,” Bhatia said.