KOZHIKODE: With dwindling wallet and dipping trade, small-scale businessmen and people in the rural areas felt the heat on Day 5 of Centre’s demonetisation exercise. People in the rural areas of the northern districts were the worst hit as many local chits and weekly draws have come to a virtual stand-still. Most of the small-scale enterprises deal mainly with primary co-operative banks and the non-availability of new currencies at these banks has come as a huge blow to their businesses.
“We are completely stuck. Normally, we withdraw money at the beginning of the month after the collection agents make deposits. it has been been stalled,” rued Pappan Master, secretary of a self-help group in Muchukunnu near Koyilandy. Small-scale traders claim they are running huge losses due to the drying up of business. Particularly hit are vegetable merchants who have seen their sales dip by about 60 per cent.
Huge stock of vegetables is getting rotten in Palayam market in Kozhikode, say merchants. Traders at Valiyangady too said the situation was no different. “People are coming with old '1,000, '500 notes to buy commodities. We received the currency till Saturday. From Monday onwards, the situation will worsen further," says Vegetable Merchants Association secretary P.K. Krishnadas.
Fish markets wear a deserted look with many preferring super markets to buy using debit card. With many turning to shops with card facilities, small-scale traders were feeling the pinch. "The cleansing drive in the name of black market has actually hit us, the small-scale traders," rued Asees K., a merchant at Nadapuram market. With money from the local chits and weekly draws drying up, jewellery buying has also been affected. "All the draws of chits have been put off. Even in this marriage season, buying of ornaments has been affected," said Latha. A.K of West Hill.
