Mumbai: Crawford Market and other usually bustling wholesale trading areas wore a near-deserted look on Wednesday, as the city grappled with being unable to use Rs. 500 and Rs. 1,000 currency notes. The notes are no longer legal tender after they were demonetised by the Union government on Tuesday.
Morale was low among traders at Crawford Market, who depend largely on cash transactions for business, as buyers stayed away. Traders reported a dip of 60-70 per cent in sales. “This is unprecedented. There is no space to walk in this market on a regular day, but today, we haven’t done much business since morning. Our customers probably decided to wait till they can get cash from the banks. We hope the scenario improves tomorrow,” a perfume trader said.
Although most understood the long term benefits of the demonetisation move, some questioned the abrupt announcement that barely gave people time to withdraw cash for daily expenses. “We have a problem giving change for Rs. 500 and Rs. 1000. We had to send back customers. Will the Rs. 2,000 note curb black money? Those dealing in black money will do it with smaller denominations anyway,” an annoyed cosmetic store owner at Crawford market said.
Some traders were apprehensive that if the banking system does not recover quickly, the demonetisation move could seriously impact profits. “Christmas and New Year celebrations are coming up. This is our peak sales season, and if this chaos continues, we may lose customers in a big way,” a leather goods trader added.
Many traders also backed the Centre’s despite a dull business day. “This is revolutionary. If we want change, we have to take this inconvenience in our stride. After a few months, the markets will rise again, and this time with more transparency,” a wholesaler of designer lights said.
However, the move has hit street vendors hard. A fishmonger who survives on daily earnings said, “I haven’t had a single customer today. Everybody is coming to me with Rs. 500 and Rs. 1,000 notes. Where do small traders like me get money from? I will have to go home empty-handed today.”
Chaos prevailed at the Agricultural Produce Market Committee (APMC) market in Vashi, but shops began accepting Rs. 500 and Rs. 1,000 notes around mid-morning. Ashok Valunj, director, Bazaar Samiti Mahasangh, said, “Because of all the media hype and WhatsApp messages, traders were initially reluctant to accept the demonetised currency, but we directed them to accept them as this is ‘white’ money, which can be exchanged at a bank. Our business works on 50 per cent credit and 50 per cent cash. So, we had business like any other day,”
However, farmers who come to APMC to sell their produce refused to accept the notes. Traders expect less farm produce to come into the market, causing a demand-supply gap and likely leading to an increase in prices of vegetables and fruits on Thursday.
