It is not business as usual for street vendors and small traders following demonetisation of high value currency by the Union government.
Even after three days many continue to wait in long queues outside ATM centres and refill their wallets only to meet essential needs, cutting down additional expenditure.
With liquidity being badly hit in the market, it is impacting the small traders as they find it tough to conduct their daily business without hassles. For Lakshmi, herbal juice and tender coconut vendor at Dwarakanagar, the fall in volumes is attributed to not having enough change to return. “I was totally unprepared for the sudden development and its consequence. When customers try to give Rs.500 for a glass of juice that costs Rs.20, I tell them that I need exact change. Lack of enough change for transactions is definitely affecting the business,” she said.
Roadside vendors on the Beach Road and those selling fruits and flowers in the market shared a similar experience. “Normally, about 300-400 kg of flowers are sold everyday. For the last few days, we are able to sell only 50 to 70 kg a day. Though we are willing to take Rs.500 and Rs.1,000 from customers, the wholesale dealers refuse to do so,” Lakshman, a flower vendor, said. Those who are not having bank accounts are at a loss as they do not know how to exchange demonetised notes. “We are being paid Rs.500 as our daily wages. However, there is no source for me to exchange these notes for new currency as I don’t have a bank account,” says G. Prasad, a construction worker. With hardly any option left, daily wage earners continue to receive demonetised currency notes. Small-time business has been adversely affected as the vendors ran out of notes of smaller denominations when buyers paid Rs.500 and Rs.1,000. Beauty saloons see a drastic drop in clients as the beauty conscious lot have now become wallet-conscious.
