Currency ban hits wholesale vegetable market in Ludhiana

Manav Mander

Tribune News Service

Ludhiana, November 27

Wholesale fruit and vegetable markets in Ludhiana is lying vacant these days due to the demonetisation move. The sales have dropped by 70-80 per cent and those in the business are having a tough time.

“There is limited cash that is in circulation and we are unable to buy fruits. We buy fruits from Hyderabad, Nagpur, Srinagar, Shimla and other parts of the county. Buyer wants payment in cash which we are unable to make. They are not ready to accept cheques and third party deposits are not allowed by banks. The market has come to a standstill and 80 per cent of the business has been affected. Not only this, we are even unable to pay to transporters due to which they have refused to transport goods,” said Kamal Kumar, a member of the Ludhiana Subzi Mandi Arthiya Association.

Since fruits are a perishable commodity, a majority of the fruit wholesalers have reduced their buying to just 20 per cent so 

that they clear the stock easily and the cash flow remains intact.

Amarvir Singh of the Punjab State Fruit and Vegetable Commission Agents Association said, “Since Rs 500 notes have not yet arrived in the city, it is only Rs 2,000 note that people are getting from banks. Sometimes we have to return customers because we do not have change. We are facing huge losses due to the current financial situation.” 

Another vegetable wholesaler Davinder Kumar said the buying capacity of both retailers and customers had reduced. Even the wholesalers were picking minimum orders, he added.

“Vegetables are perishable commodity due to which we face huge losses and are unable to clear our stock. My purchasing capacity has reduced by 80 per cent. Only god knows when things will return to normal,” Kumar said.

Be it wholesalers or retail fruit and vegetable sellers, the business have gone down for both. “Customers come with Rs 2,000 note and buy vegetable for Rs 100 or 200. 

I do not have change due to which customers return. Now I have reduced my buying from the market since the number of customers has also reduced,” said Mohd Hussain, a vegetable seller at the Civil Lines.