Demonetization has hit small retailers hard. Upcountry markets and unbanked villages are majorly affected by currency change. Markets are deserted with customers, and cash flow has crunched. Experts are also commenting that it will take some time to revive.
Jharkhand has a different story altogether, here sales are dropped down, but first people are first looking at fulfilling there essential needs. On retailers side, there is problems in payments to small scale workers as they all deal in cash. Another problem is, scarcity of ATMs in the upcountry markets. Retailers are finding it difficult to pay for daily operations. Sales are also dropped due to the reason that people are panicking and also they are devoting their time in queues of bank and ATMs.
A S Vidyarthy of Origin Technology, Jamshedpur says, “Demonetization has affected our business a lot, retail market has degraded 40 to 50 percent. Overall, a huge difference is seeing in sales. In Jharkhand, people are not so into online. And after demonetization, retail is in huge loss and underperforming.”
Owner of Computer Network in Ranchi, Sanjay K Jain from also shares same views, “IT and Telecom trade sales has degraded a lot, as it is not an essential item. My business has 60 percent dropdown in sales. Consumers are right now, looking at essential things to buy.”