“This is the worst Diwali of my career, since 1973. Even in the aftermath of 2002 riots, the sales were good,” says Mukesh Sheth, a leading trader at Ratan Pol, the traditional textile market of the city.
“If we ask a fellow trader about how his business is doing, we are just touching a raw nerve. Earlier, we would not have this time to interact with you. But now, most of the retail traders are sitting idle,” he adds.
Sheth is not an exception. Most traders in the market have the same story to tell.
Businessmen say that liquidity crisis induced by demonetisation nearly a year ago and GST that was rolled out on July 1 have robbed the small businesses, manufacturers, wholesalers, retailers, as well as consumers. The shortage of cash has also cut the demands from rural buyers. “There is about 70 per cent drop in consumers from villages in Saurashtra,” Sheth says.
Gaurang Bhagat, president of the Maskati Kapad Mahajan, which represents close to 50,000 textile and garment traders in the city, says: “Before demonetisation, the cash flow was intact. Now, the cycle has been broken. Consumers have become very measured and business is becoming increasingly unviable. Those who have taken loans are finding payment of installments very difficult. Businessmen, especially in the textile sector, were not given enough time to adapt to the new system.”
Pathik Shah, secretary of the Shree Choksi Mahajan at Manek Chowk, the traditional bullion, gold, and jewellery market in Ahmedabad, says that GST has not directly affected gems and jewellry sector but the slowdown it has caused in other sectors is reflected in the demand for gold.
Jewellery
Sales this year have dropped by 30-35 per cent, compared to last year, says Shah. Normally, sales for the marriage season begin in Navratri, soon after the Shraadh period. But this year, the situation is different.
It was only on Pushyanakshatra, on Friday, that markets came out of the gloom. Even then, sales were lower as compared to last year. Now, all hopes are pinned on Dhanteras, which falls on Tuesday. There are fears that even the upcoming marriage season may not be up to the mark.
Electronics, electricals
Sunil Motwani, president of the Relief Road Electronics Market, says that in addition to other factors, the sector is also hurt by discounted sales on e-commerce market places and organised retailers, who can buy at discounted price, a bargain not possible for small shop keepers. Sales at traditional shops have dropped by nearly 70 per cent.
The scene at Gandhi Road, market for gift articles, fancy lights, and electrical items was also gloomy, something extremely rare for the busy market. “There is almost no business this year. It is down by nearly 90 per cent,” says Jagdishsingh Khalsa, vice-president of the Gandhi Road Vepari Mandal. The area has about 4,500 units that manufacture electrical equipment or selling them. The work going on, however, is just about 10 per cent of what it used to be.
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