The Koyambedu market is legendary for its crowds and garbage, besides of course, the best wholesale rates for fruits and vegetables. However, none of these constants is valid any longer. While the garbage has increased and the prices have come down, there are hardly any buyers in the market.
Traders and daily wage labourers alike are perplexed about one issue — accepting higher denomination currency notes. Following the demonetisation move, wholesale traders at the Koyambedu market are among the worst hit as the footfall has come down by half and most traders say they are severely cash-strapped to carry on daily transactions.
On an average, the market receives every day nearly one lakh visitors, both retail merchants and customers.
The daily sales in the three sections of the market have dropped to Rs. 3 crore from Rs.7 crore as there is no liquidity, traders noted.
The price of vegetables has plummeted by 50 per cent, which is claimed to be the lowest in the past decade by traders. S.Chandran, president of Koyambedu Licensed Wholesale Vegetable Merchants Association said, “Farmers only want lower denomination notes for the produce supplied.
On the other hand, we have little choice than to accept Rs.500 and Rs.1,000 notes from retail vendors. We cannot run our business on credit for this long. The limited amount provided by the banks on exchange or withdrawal is not adequate to carry out daily transactions.”
The supply to the market has also halved; it is reportedly receiving only 300 truck loads of vegetables against its usual supply of 600 loads daily from other States such as Andhra Pradesh, Kerala and Karnataka as suppliers and transporters too feel the pinch of cash shortage.
In contrast to the decreasing number of lorries daily, prices of vegetables are plunging as there are not many takers.
“One kg of tomato is being sold at Rs.6 per kg in the wholesale market. Most vegetables are priced at less than Rs.10 a kg. We usually have more sales this time of the year as it is the wedding season,” said M.Thyagarajan, a wholesale tomato seller.
Increasing wastageAnother worrying trend is the increasing wastage in the perishable goods market.
Most vegetables except for onions and potatoes cannot be stocked beyond one day. Nearly 25 per cent of the vegetables received get wasted as there are no means of storage, complain traders.
Many traders have started making multiple visits to banks to withdraw or exchange currency after business hours to pay suppliers and labourers. P.Sukumar, joint secretary, Koyambedu Vegetables, Fruits and Flowers Merchants Welfare Association, said: “Some of us continue to accept Rs.500 and Rs.1,000 notes. But, we ask retailers to provide 50 per cent of cash in lower denomination currency to manage liquidity. I managed to withdraw up to Rs.36,000 in three banks where I’ve accounts.”
Small traders like S.Marimuthu, a curry leaves seller, are severely affected as they manage only 50 per cent sales but continue to pay two to three interest for credit.
“I take loans for my trade and return after sales. I suffer a huge loss as lenders do not accept Rs.500, Rs.1,000 notes or agree to waive interest,” he said. Wholesale traders demand that the government must relax cash limitations for traders and allot special counters in banks at least in the vicinity of the market.
