Thiruvananthapuram: Retail markets in the state are yet to recover from the aftershocks of the demonetisation drive after it was kicked off a month ago. Scarcity of currency notes has forced many to turn to plastic money but traders say the sales have down by almost one –third as most people restrict purchases to the minimum. Wholesale trader M. Mohammed Sidheek in the Chalai market in Thiruvananthapuram said the crisis has eased slightly but people are hesitant to make cash payments. Mr. Sidheek, who is also general secretary of the Chalai-Kothuval unit of Kerala Vyapari Vyavasayi Ekopana Samithi said traders are also finding it difficult to make payments for wholesale purchases, transportation and loading and unloading.
“The talk about the digital payment is yet to percolate down to this vast network,” he said. Hotel and restaurants are also still struggling to keep afloat. “It seems it would take another two to three months for things to become stable,” said S. Sreekumar, manager of a restaurant in the city. “And many small scale hoteliers would be neck deep in trouble by that time." The sales have been hit by nearly 15 per cent following the currency imbroglio, said a restaurant-owner in Kochi. Land transactions across the state reportedly came down by almost 50 per cent after demonetisation. But sources in the construction sector said that apartment sector was not yet affected by demonetisation though they fear that it would affect the launch of new projects.
"A wrong impression is being spread that the reality prices will fall in the backdrop of demonetization,” said Confederation of Real Estate Developers’ Associations of India secretary-general S.N. Reghuchandran Nair. “But it is not the real case. Land component in apartments is minimal. Prices of flats are based mainly on construction cost, which is always in the escalating trend. It seems people are now postponing their plans to invest in flats on the basis of misleading reports that the prices will fall." The textile sector, badly affected hit by the demonetisation, is showing some signs of revival. “Though sales have improved, the unavailability of currency notes of Rs 100 and Rs 500 denominations is badly hitting the business. The government should have pumped in enough lower denomination notes," said Anil Kumar, a textile retailer in Kollam.
