For the past few days, the paddy and rice markets in Red Hills — the backbone of the city’s rice supply — have witnessed a drastic drop in business. Traders say sales have declined by nearly 60 per cent.
With cash being the only mode of transaction, many trucks from neighbouring Andhra Pradesh and surrounding Tiruvallur and Kancheepuram districts have stopped transporting produce.
Instead of the heavy 25-tonne laden trucks, empty vehicles line the roads leading to the markets that are usually bustling with activity in the early hours.
On an average, the markets, which are located on the same road get 100-150 trucks from Andhra Pradesh daily.
During peak season, the numbers go up to 250 trucks a day. These wholesale markets, where cash is the backbone of transactions, are severely hit as merchants cannot use old currency notes and are unable to carry out transactions due to the ceiling in the withdrawal limit.
M. Jayapalan, vice-president, Red Hills Paddy and Rice Wholesale Merchants Association, said: “We need to pay at least Rs. 35,000 towards freight charges and labour for every truck. We will also have to make a payment of nearly Rs. 5 lakh for 320 bags of produce.”
Truckers are diverting produce to other places including Arani, Chengalpattu and Kancheepuram as traders here are unable to pay them in cash.
“Rice wholesalers and retailers from the city also do not visit the market as we cannot accept old currency notes. There has not been much of an increase in the prices as there is no sales,” he said. M. Muthu of Radha Paddy Mandy said payments for workers and truckers was also an issue. “They refuse to take the high denomination notes, both new and old ones. There are over 100 rice mills in Red Hills and all of them have been affected,” he said.
D. Thulasingam, president of Federation of Tamil Nadu Rice Mill Owners and Paddy-Rice Dealers Association, said that recently, they had convened a meeting of paddy suppliers and rice millers. “Many of them do not have bank accounts. And even if they have and if we transfer cash, farmers can withdraw only Rs. 25,000 at a time and others Rs. 2,500. They say they would rather not do any business and wait till things clear up,” he said.
Harvest season
Though there is enough stock in the mills, the harvest season, particularly of the Bapatla rice variety, is on. Wholesale merchants demanded that the government must either increase the withdrawal limit for traders or allow the use of old notes. “Rice is more important than fuel. When they allow de-notified currencies in fuel outlets, they should allow it in the rice markets too,” said a trader.
Meanwhile, lorry operators noted that only 15,000 of the 50,000 trucks operated across the State were plying now. R. Sugumar, president of Tamil Nadu Lorry Owners Federation, said only 30 per cent of the sales is happening. “We are forced to halt operations as we are unable to even meet the daily expenditure of drivers,” he said.
