A fortnight after the Centre’s move to withdraw high-denomination currency, Pune is reeling under the effects of demonetisation, with several cash-intensive trades across the city hit hard.
The proposed move towards ‘cashless economy’ is a chimera in the city’s sprawling Shivaji market in Camp area, which has seen a sharp plummeting in fish retailing, with business dipping by more than 30 per cent post-November 8.
Of the 20-odd shops operating in the tightly-packed environs of the market, only a couple of them have card swipe machines. Poor connectivity has deterred many from installing more, leading many shops to continue accepting discarded high-value notes rather than lose their precious business.
The days immediately following demonetisation were a nightmare for fish traders, with the market almost shut for a week.
“Our business, retail and wholesale, is primarily conducted in cash. We used to do hefty business of Rs. 50,000 a day, which is now barely crossing the Rs. 30,000 mark,” said Thakur Pardeshi, a trader.
Dairy farming is another sector to bear the brunt of the move. Despite dairy farmers being paid directly into their accounts, they are unable to withdraw money as a majority of their funds are locked in Urban Cooperative Banks and District Central Cooperative Banks (DCCBs), which are yet to get Reserve Bank of India’s nod to accept and exchange old currency notes.
“While we have paid our farmers on time, 50 per cent of them bank with DCCBs and are unable to withdraw. As a result, they are unable to purchase fodder for the animals. Business has dipped by around 30 per cent as the end retailer is not willing to spend,” says D.S. Mane, chairman of the Indapur-based Sonai dairy, which works with more than 15 lakh farmers across the State.
Pune’s autorickshaw drivers too are ravaged by the move, feeling the tremors of the move more acutely than many other businesses.
“Earlier, I made around Rs. 700 a day, of which Rs. 200 went towards rent or maintenance of the vehicle. Now, customers are avoiding to travel by rickshaws in a bid to save lower denomination notes. And a card swipe machine in an autorickshaw is not feasible,” said Santosh Khodve, a rickshaw driver from Pimpri.
According to Sudhir Bhadawle, an autorickshaw driver who operates in the Aundh-Baner area, the atrophied profits following demonetisation has been aggravated by the fact that auto drivers have to pay Rs. 5000 in the form of road tax.
“My day’s earning has reduced to a bare Rs. 200. While we support the Modi government’s move as we hope it will bring out the hoarders, profiteers and corrupt politicos into the open. But it ought to have been better planned and backed-up,” he opined.
The tourism and culture industry, so integral to Pune, has taken a hit too, especially in places where the entry ticket is priced between Rs. 15 and Rs. 50.
According to sources, the average number of footfalls at the historic Sinhagad fort, along with those at the Raja Dinkar Kelkar Museum, which showcases more than 20,000 artefacts across the country, has dipped by around 15 per cent since the momentous move to demonetise.
“While November is usually packed with visitors, business has slowed down since the last fortnight. However, we expect things to normalize soon,” said Sudhanva Ranade, director, Raja Dinkar Kelkar Museum.
However, some have adapted to change. A section of enterprising vegetable vendors and tea-stall owners in the city are increasingly using card swipe machines or have begun accepting payments through e-wallets.
Laxman Kachi, a tea stall vendor who operates in Sangavi, has started using an e-wallet service with a vengeance since demonetisation.
“What worked in my favour was the fact that a large number of my customers were tech-savvy. It was on the advice of one such customer, who works for Paytm, that I switched to this facility, which has considerably eased the payment woes of my customers,” says Kachi, who has made Rs. 1200 in the last few days, while being featured in several local dailies.
