Demonetisation hits businesses hard

​Hyderabad: Demonetisation has hit vibrant city businesses hard, be they wholesalers or retailers. For instance, even perennially busy streets of Begum Bazar and Osmangunj wear a deserted look these days due to lack of legal tender and problem of change.

There are over 100 wholesale shops that sell essential commodities, mainly to city hotels, restaurants and other eateries.

Due to demonetisation, most of the wholesale businesses have come to a grinding halt as the Rs 500 or Rs 1000 currency notes are no longer legal tender.

According to the wholesalers, the retailers are lamenting that due to the Centre's decision they are not able to sell even 10 per cent of their commodities.

Besides, retailers in the area do not accept credit or debit cards and all their business transactions are normally carried out in cash.

Speaking to The Hans India, Azad, a retailer, said that Rs 2 lakh turnover had come down to Rs 5,000 in the past five days.

"Since we cannot accept Rs 500 and Rs 1,000 currency notes, we have shutdown our business," said Sai Kumar, owner of Sai Stores.

Several other retailers said that due to non-availability of Rs 100 denominations, they have no choice but to lose their customers.

They also said that retailers from others states had sto­­p­ped supply of goods even after making online pa­­­y­­ments.

Several truckloads of stocks were stuck midway due to lack of funds. Retailers claimed that they could run their businesses only if the Centre increased the withdrawal limit per week.

Presently, the limit for withdrawal from banks is Rs 10,000 per day and Rs 20,000 per week. Although ATMs are supposed to dispense up to Rs 2,000 per day, subject to the overall limits, most of them have not yet been calibrated to issue the new notes.

The few that opened run dry within a few hours. Daily wage labourers are among the worst hit. Several labourers, normally engaged in construction activity or shifting of goods, are seen sitting idle with cashless pockets.