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Trade holiday looms over Vijayawada
The so-called surgical strike by Prime Minister Narendra Modi on black money hit hard trade and commerce in I Town in the city. I Town
- Business activity comes to a screeching halt
- Traders fear I-T raids
- Surge in sale of gold biscuits
Vijayawada: The so-called surgical strike by Prime Minister Narendra Modi on black money hit hard trade and commerce in I Town in the city. I Town is a hub of wholesale trade with an estimated daily turnover of Rs 500 crore.
According to Vakkalagadda Bhaskar Rao of the Vijayawada Chamber of Commerce and Industry, the lack of clarity over acceptance of the demonetised notes and curbs on cash withdrawals are the cause for the collapse of business, especially in the wholesale trade.
I Town is famous for wholesale cloth business, iron, electronics, home appliances, groceries, pulses, oil, ready-made dresses, pharmaceuticals etc.
Bhaskar Rao said it was high time the government clear the air of uncertainty over remitting the cash in big denominations in banks by traders since November 8, the day when the Prime Minister launched surgical strike on the black money.
“Banks are accepting our remittances. But we are afraid of IT swoops over our business establishments basing on cash deposits in banks”, says a trader requesting anonymity, adding, “Instead of living in fear, it is better to end up with a zero-business’.
Bhaskar Rao said curbs on the limit of withdrawals also deliver a deadly blow to big business establishments. “We have to receive huge amounts, mostly in high denominations, from our customers and pay to our distributors, mostly in the form of cash. The Rs 20,000 weekly cash withdrawal cap stifles transactions”, he rued.
To quote Konijeti Ramesh, convener of the AP Trader Joint Action Committee, trade, involving pulses, food grains, pharmaceuticals, machinery spares, cloth business, pipes and sanitary ware, have unwittingly become victim of the so-called surgical strike.
The AP Chambers of Commerce and Industry Executive Director P Bhaskar Rao said a virtual `trade holiday’ reins in the city with an 80 per cent dip in transactions. “It is bound to continue for some more days as the money market is yet settle with sufficient cash reserves. The trade has to prepare for this eventuality”, he added.
Inquiries revealed that the business activity has come to a screeching halt, barring a surge in sale of gold biscuits. Gold seemingly offered an escape route for the black money hoarders, leading to a rush for ‘gold spots’ in the 1-Town. In a bid to turn the black money into white, the hoarders reportedly are scrambling to buy gold biscuits. It is being said that people are shelling out Rs 75,000 over and above the price of 100g biscuit, which is at Rs 3.15 lakh. I Town is a major centre for bullion trade running into crores of rupees daily.
G Nagaraja
