Sat, Dec 10, 2016 | updated 06:15 PM IST

Demonetisation hits traders; approx 90 pct witness decline in business

Updated: Nov 25, 2016 18:51 IST

New Delhi [India], Nov 25 (ANI): The decision of the Centre to cancel the legal tender notes of Rs. 500 and Rs. 1000 has taken its toll on 90 percent traders across India as they are experiencing a decline in their business ranging from 0-90 percent.

As per a survey conducted by LocalCircles, approximately 16 percent traders across the country are experiencing sales declines in the range of 60-90 percent, which includes jewelers, furniture, sanitary-ware and traders dealing in other discretionary items.

Approximately 28 percent traders are experiencing declines of 30-60 percent and those in this category include traders of automobile, computers, mobile phones, garments, etc. According to the poll, approximately 46 percent traders are experiencing sales declines in the range of 0-30 percent and these include general stores, prepaid recharge and those trading many other essential use items.

In the survey conducted, around 8000 citizens were requested to visit their local market, speak to traders and small retailers and only then respond to the survey question.

According to the poll, 46 percent traders are experiencing sales declines in the range of 0-30 percent and these include general stores, prepaid recharge and those trading many other essential use items.

Per feedback from citizens, traders and small retailers are struggling for two primary reasons which are cash crunch and removal of black money from the system. Once the cash becomes available in the system most believe that 60-70 percent of the lost consumer demand and lost sales will come back.

However the remaining 30-40 percent consumer demand which were the purchases from black money are permanently lost.

Hence, their sales and earnings will now be lower in the short as well as medium term.

In a related survey conducted by LocalCircles on consumer spending, approximately 20 percent consumers plan to spend less in the coming weeks due to uncertainty post demonetisation of the old currency. Another 30 percent consumers say they see themselves spending less in the coming weeks due to the limited availability of cash. 47 percent consumers said they plan to spend the same as pre demonetisation. (ANI)