Traders are concerned that they might not be able to sell the stock of goods procured in anticipation of good business as there is less footfall of consumers in the markets due to cash liquidity issue, CAIT said.
The Confederation of All India Traders (CAIT) said Diwali is just few days away but markets across the country wore a deserted look.
“Less footfall of the consumers in the markets. Acute (shortage of) cash liquidity is the main reason for slow down,” CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said in a statement.
The trading community feared that sales this time may dip by about 30 per cent as compared to last year, it said.
“Traders are worried for the stocks which they have already procured in anticipation of good business this festival,” it added.
Items like consumer durables, electronics, kitchen appliances, sweets, dry fruits, home decor, light fittings and garments are some of the business verticals which are worst affected, CAIT said.
It added that the slowdown is further multiplied by glitches in GST (Goods and Services Tax).
“Confusion still prevails to a great extent which is more bothering traders.Over and above most of the items related to festival are under bracket of 28 per cent tax rate which consumer is hesitating to pay,” the traders’ body said.