Hawkers’ sales down by 70-80 pc due to demonetization

Hawkers’ sales down by 70-80 pc due to demonetization

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The daily sales of has come down by 70-80 per cent after demonetisation of high-value currency notes, their union said on Friday.

Hawkers' sales down by 70-80 pc due to demonetisation
Leaders of hawkers union said that even after the financial inclusion, Indian trade has continued to remain "post-paid and hard cash driven

“There are about 4 to 4.5 crore hawkers in India. Their daily business (sales) has been down by 70-80 per cent,” said the Hawkers Sangram Committee’s Joint Secretary Murad Hossain.

“Based on the feedback from the hawkers that we have got across major cities in India, the daily average sales have come down to Rs 300-400 while their average sales were around Rs 2,000 a day before the demonetisation of Rs 500 and Rs 1,000 notes,” he added.

Read: Demonetization a Masterstroke, give it time to play out: CII

Hossain said people were forced to buy goods from the modern retail stores and online retailers due to demonetisation.

According to the hawkers unions’ survey, annual turnover of hawkers’ in Mumbai, Delhi and Kolkata was around 25,000 crore, he added.

Leaders of hawkers union said that even after the financial inclusion, Indian trade has continued to remain “post-paid and hard cash driven”.

The informal economy of this country, which employs roughly 93 per cent of India’s working class, has been impoverished, hawkers’ union said.

“Around 50 per cent of the street vendors of India do not have bank accounts. A sizable section of street vendors can access banks only at their home towns. They need supply of cash from the last day’s trisection to start a new cycle in the morning,” Hossain said.

“Demonetisation of high currency notes will not be able to address black money issue but it will put a challenge before the banking industry. Bank’s burden of non-performing assets will turn to burden of deposits. With a huge surge in deposits in bank, their interest payment obligation will rise and at the same time, banks are not able to disburse loans,” said economist Dipankar Dey, who is supporting the cause of hawkers.