Chaos is a way of life in Azadpur Mandi but the note ban has pushed business into such disarray that many vendors here are finding it difficult to snap out of the downward spiral.
The city’s biggest wholesale market has thousands of wholesalers, farmers, middlemen and labourers converging everyday to deal in tonnes of fruits and vegetables — mainly in cash.
On Wednesday, The Hindu tried to gauge the prevailing mood and how demonetisation has affected their lives in the past one month by talking to a cross section having representation from each one of these fields.
Even those who claim they are favourably inclined towards the Centre and back the move say business has suffered immensely.
Many problems
From falling rates, unsold stocks, reduced demand and delayed labour payments, the shortage in cash has affected almost every aspect of business in the market.
The scattered nature of the business means the the Agricultural Produce Market Committees (APMCs) do not have comparative records, but piling stocks and individual balance sheets tell their own story.
Lakhan Singh, a farmer from Rampur in Uttar Pradesh, has been finding it tough to sell the 10 tonnes of cucumber he has brought with him.
Since demonetisation was announced, Mr. Singh has made two trips instead of three that he would ideally make this time of the year. The main deterrent: the Rs.10,000 in cash he needs to cover transport and logistical cost.
D. D. Singhal, a 40-year-old veteran in the market, said that the current crisis is unparalleled. This year, Mr. Singhal is dealing in capsicum. He said that till last month his produce was selling for Rs.25 a kilo, but since demonetisation hit, the price has plummeted to Rs.5 per kilo for bulk purchases.
“For a business that sees bumper purchase and sale during this time of the year, things are quiet. Since no advance payments are made to the farmer, his rate will depend on what I get. The little cash dispensed through banks barely covers the transport costs. There is no money at all,” said Mr. Singhal.
To reduce logistical costs, farmers are now looking at travelling to mandis that are geographically closer to them.
Silver lining
The only silver lining, if it can be called one, is the drop in temperature that has allowed vegetables to be stored for a little longer than usual. Otherwise most of the stock would have already perished.
