Following the recent floods and its consequent havoc, small business owners of Ajith Singh Nagar in Vijayawada are struggling to get customers. Ever since they reopened the shutters of their shops after the floodwater receded in their colonies, they expected that their businesses will return to normal soon. However, even small chai stalls are seeing fewer customers in the flood-affected areas.
A chai seller, who sells a cup for ₹6 at a small stall under the Singh Nagar flyover, said that while he sees a lot of people going about their businesses in the morning and evening times, very few stop by at his stall. “Earlier, 15 litre milk was not sufficient for a day, and now even 8-9 litre is not being used. We are mostly sitting idle,” said the seller, who did not want to be named.
Burden of loans
Nearby, a scrap dealer’s shop is filled with damaged goods, warped books and cartons. “Some of the scrap here are too damaged to fetch us any money,” said Srinu, who runs the shop in a rented space. His wife works as a domestic help at a house and gets ₹1,500 a month. “The going is getting difficult for us. I borrowed ₹20,000 from a lender on September 1. I have to give it back in three days, but since the business has slowed down, I could only manage ₹5,000 so far. There is no rotation of money in the market. I have to depend on my relatives for the rest,” Mr. Srinu said.
While it is common for small business owners to borrow money from lenders, the slowdown in their businesses have left many worried about repayment. Mr. Srinu said if one borrows ₹1,000 in the morning, one has to give it back with 10% interest by evening, or if they take ₹10,000, they have to give it back with 20% interest, he said.
Rama Rao, who has a cycle store and sells spare parts, said while there is a crunch, he does not want to depend on unknown lenders due to the risk. “The lenders create a nuisance if we do not repay the amount on time. I have run the shop for 32 years and I do not want to put my reputation at stakes. The situation was not so dire even during the pandemic,” he said.
Several cycles remain parked in front of Mr. Rao’s shop. “People left them here and are yet to take them back. But, we understand that a time when people are living a hand-to-mouth existence, getting their bicycles repaired must be the last of their priorities,” he said.
Both Mr. Srinu and Mr. Rao’s houses are located on the groundfloor and were inundated during the floods. They are eligible to get ₹25,000 compensation from the State government. “I have incurred nearly ₹2 lakh loss, any monetary help will be appreciated,” Mr. Rao added.
Published - September 23, 2024 07:35 pm IST
