Slow cash flow a big blow to traders across Jammu

The demonetisation of higher currency notes by the Central government has made the markets sluggish due to cash crunch.
Manufacturing units are also facing scarcity of cash to get the raw material and make payments. The trade bodies have extended support to Prime Minister Narendra Modi’s move, but a majority of the businessmen are apprehensive about the long-term effect of the decision on the economy and employment generation.
Meanwhile, the Chamber of Commerce and Industry (CCI) said traders were suffering, but they expect that things would get back to normal in the next few weeks.
“We are supporting the decision of the government aimed at ending black money in the economy, but traders are also suffering as people are not shopping due to lack of cash. But we are hopeful that things will get going once the limit of withdrawal is increased,” said Rakesh Gupta, president, CCI-Jammu.
Meanwhile, Federation of Industries Jammu (FoIJ), chairman, Lalit Mahajan said business units were forced to slow down production due to the restriction imposed by the government on the withdrawal limit up to Rs 24,000 per week that could affect the overall economy of the state.
“Due to restrictions, the working of the industrial sector is slowing down as units need a lot of cash to carry out day-to-day payments and transactions that includes payment of freight and other production-related expenses,” Lalit Mahajan said.
“We have decided to postpone shopping for my sister’s marriage planned for mid-December. Let’s see what happens after November 30 and hope that the cash limit will be increased,” said Mohit Raina, a local resident.
Though there are apprehensions among the business community that the Centre’s decision will slow down the trade and the business activity, but economic and financial experts say the step could also plug the inflow of counterfeit currency in Jammu and Kashmir.