Trust, credit revive business at Azadpur Mandi after demonetisation shock

NEW DELHI: It's mainly trust that keeps business going these days, at least at Azadpur Mandi, North India's biggest vegetable and fruit market. After the initial disruption because of demonetisation, Azadpur Mandi is seeing a significant surge in business as availability of cash and credit to farmers and traders have improved. Traders claim that supplies to the mandi had dropped 50% soon after the demonetisation move.

“Vegetable supplies have now increased by 5-10% over the previous weeks. Trade is mostly being done on the basis of trust and credit,“ said Metharam Kriplani, president, Chamber of Azadpur fruit and vegetable traders in New Delhi. Kriplani, like other traders, is confident that the daily trade of vegetables will further rise to 10,000 tonnes from the current 7,500 tonnes if the government increases weekly withdrawal limit for traders.

“Purchasing power of traders is slowly improving as farmers, vegetable procurers and retailers are coming to the market with 100 notes. The Rs 2,000 and Rs 500 notes are still not in huge supply . Also, since it is harvest time for potatoes and onions in Uttar Pradesh, Himachal Pradesh, Rajasthan and Punjab, farmers are in a hurry to sell off their produce, said Rajinder Sharma, former chairman of the Azadpur mandi.

According to Sharma, daily arrival of trucks still remain erratic. “Today 25 trucks of 20 tonnes each of onions have come to the mandi, yesterday it was 40 trucks. Local supply has increased as harvesting has begun in Rajasthan,“ he said. Onion prices have corrected in the past one week to Rs 9 a kg from the current Rs 15 a kg.

“Trade is happening because traders and farmers have come to a middle ground. We cannot leave farmers in the lurch. We are buying produce for which payment will be made on a later date,“ said Dina Nath, a vegetable trader.