Bengaluru: The recent demonetisation of high value currencies by the Narendra Modi government and the resulting cash crunch has badly affected the jewellery business in the city. After doing brisk business during the recent Dhanteras and Diwali, jewellery shops are now facing a drastic fall in sales. Jewellers complain their livelihood has been badly affected after `500 and Rs 1,000 currency notes were demonetised on November 8.
According to Dharmesh, proprietor of a small shop named Mohan Jewelers in Ulsoor, “There is a big drop in terms of jewellery sales due to demonetisation move.” He admitted that it has taken away the sheen from their business. “A lot of people used to visit my shop, but the demonetisation move has put them off. Business is really very slow and hardly any sales have been made,” he said, pointing towards ornaments on display at his outlet.
Other jewellers too concur to his view. Kunal of Manohar jewelers said, “Card transactions have gone up immensely. This move has reduced currency in the market. Business too is hit. Customers don’t want to buy because they are short on cash. They should allow us to accept old currency notes for a certain period,” he added. An employee of Padma Jewelers told Deccan Chronicle that their business too has been affected.
“People, especially women, don’t want to buy as there is a shortage of cash. But card transactions have drastically gone up. About 90 per cent of those coming to our shop these days are paying by card.” Customers too are feeling the pinch. Malleshwari Jayaram, a homemaker who was shopping for her niece’s wedding, told Deccan Chronicle, “I am shopping for ornaments to gift my niece as she is getting married soon. I had withdrawn cash in the first week of November to ensure I could shop at my will. But as soon as the move was announced, I went back to the bank to exchange the old currency. I am now buying jewels using my husband’s debit card.”