Kerala traders fear further fall in business

KOCHI: The Kerala Merchants Union, the apex body retailer traders in Ernakulam, has expressed apprehensions that slowdown in economic activities following the demonetisation is likely to worsen in the days ahead if the government fails to take immediate steps to improve the supply of currency. “All segments of the retail business have been hit by the decision as people have postponed the purchase decisions due to the shortage of currency. The business is down by 80 percent,” its general secretary Mohammad Zaheer told DC. “Textiles, jewellery, construction materials and white consumer goods are some of the worst hit areas.”

The union with a membership base of nearly 6,000 small and big merchants belonging to mainly in Ernakulam and its surroundings is planning to hold a meeting early next week to take stock of the situation. “We will discuss the ways to circumvent the problems including the possibility of initiating a protest against the government action,” he said. As the demand hitting the lowest, they are devising innovative ways to attract customers by offering to accept cheque payments instead of cash.

A leading textile retailer in the city has introduced the cheque system with the condition that the final delivery of the purchase will be only after the amount is credited to the account of the textile shop. The customers, however, are not flocking shops mainly due to the cumbersome process. The gold price has slipped by Rs 1,000 per sovereign to touch Rs 22,400 from a high of Rs  23,400 recorded on November 9, 2016, a day after the demonetization decision. "Shop owners cannot accept cheque payment and deliver goods without making sure that the payments have reached the bank accounts, they said. “Otherwise the possibility of cheating cannot be avoided.”