Demonetisation affects, retailers, religious offerings

Mangalore Today News Network

Mangaluru, Nov 21 2016: People at  retail grocer’s shops are failing to pay up the credit extended by small retailers in good faith due to the change shortage. With no change, the retailers are often forced to give momentary credit and are left wondering whether it was a wise. 

The demonetisation drive, in its second week, has left retail business bleeding. Though temples have reportedly got more offerings with devotees offering the demonetised bills, churches in Dakshina Kannada have reported a 20% to 30% drop in their weekly collections.

A Rs 14,000 transaction went bad due to line failure and the cheque given by the customer bounced. After that I have not kept card swipe machines and deal with cash.  Customers order over phone and come to collect the groceries. "After loading into the vehicle, they offer me a Rs 2,000 note for a sale of Rs 600 or less. How are we supposed to run the business with banks not dispensing Rs 100 notes,’’ he questions.

Grocers and small retailers, are finding it increasingly difficult to sustain business and are reeling under losses with no small change available. Usually, weekends, especially Saturdays see peak business. This has now reduced to 50% and weekday business is gone down by 30%.

The unlikeliest place where collections have gone down are churches.  A well kown priest from the Mangalore diocese, admitted that they had got information from many churches that collections have dropped by 15% to 25%. A church near Kankanady has an average weekly collection of Rs 27,000 to Rs 29,000 during November. This has come down drastically. If the collection last week, which the church announces it during the weekly mass, was Rs 24,000 this Sunday it was Rs 21,000. "We used to get Rs 500 and Rs 100 denominations during weekly collections from devotees earlier to the drive. Demonetisation is the main cause for the drop,’’ said a priest at the church. This seems a common fall out generally. Change is a much needed commodity.