Demonetization effect: Incomes of female vendors plunged

A research has revealed that though 70 per cent female vendors did not see any change in demand for their products, their incomes were significantly affected nonetheless following demonetization. The research was conducted at the Indian Academy for Self Employed Women (IASEW), a unit of SEWA.

The study also reports that the women had to work at least an extra hour in order to sell their goods following demonetization. 68 per cent of respondents to the survey stated that their incomes had decreased since demonetization.

It also found that only 50 per cent of respondents had Rs 500 and Rs 1000 notes with them when demonetization was enforced.

The research by Gita Naila, Jayshree Panchal and Jashu Rathod was a result of individual interviews with 60 respondents from four slums of Ahmedabad, three months after demonetization was declared.

"The women mostly earned in small currencies. Many, like vegetable vendors, had known their customers for a very long time and hence would give them vegetables on credit during the period if they had no change. This could be why many saw no substantial drop in demand but dip in income," said Panchal.

Around 65 per cent women reported a decrease in their family's incomes too. 39 out of 60 respondents said their overall family income — combined income of son, husband and their own — was affected due to demonetization.

Out of the female vendors who reported a drop in family income, 43.5 per cent admitted that their husbands were hit by recession that followed demonetization, while 38.4 per cent reported a drop in their own income.

Nine out of 60 women reported loss of a family member's job, meaning 15 per cent of the respondents bore the brunt of unemployment that stemmed from demonetization.

The survey also found that male members of the respondent's family, particularly working in the hotel industry or as casual labourers or were employed by small firms, were largely hit by unemployment at the time.

Another interesting finding was that with demonetization, 53.3 per cent of the respondents found more people joining their ranks. Which means they found more number of workers taking up the same job as the surveyed women leading to increased competition.

Hemantkumar Shah, a professor of economics at HK Arts College said women form a considerable share of the unorganised sector in the country. "The impact on this sector was through loss of jobs and loss of livelihood. Take the construction sector where many women work as labourers. During demonetization many not only failed to gain employment but also could not get their salaries because the contractors usually pay them in cash and there was a shortage of the same," said Shah.

Nimisha Shukla,  Dean, Social Science Faculty, Gujarat  Vidyapith said “The unorganised sector depends on day to day cash transactions. During demonetisation, lack of cash, inability to understand net banking played havoc with the livelihood of workers from marginalised section particularly women.”

Report by Indian Academy for Self Employed Women, SEWA

EFFECTS OF DEMONETIZATION

• Women vendors who had a bank account and Rs 500/Rs 1000 notes in cash, spent at least one or two hours trying to give away the notes
   
• Most of these women claimed that they had more trouble withdrawing the money than depositing it in the bank
   
• Because of lack of change, the women did not buy new clothes for their families during the period. They also avoided buying used clothes as not everyone had enough change

FEMALE VENDORS

• 70% Found no change in demand of things they vend despite demonetization
   
• 68% Stated a decrease in incomes since demonetization
   
• 50% Had no Rs 500/Rs 1000 notes with them
   
• 65% Reported a decrease in the family’s income too
   
• 15% Saw unemployment in family stemming from demonetization

INTERESTING REVELATIONS

• A bank called the cops, when one of the women vendors in Ramdevnagar who had collected some money in cash for an impending social function, went to deposit her cash. The cops and the bank let her go home only after she showed marriage invitation cards and convinced both that the money was hers
   
• Two or three women converted their cash into gold by buying jewellery
   
• Some women took to buying their entire year’s grocery from big stores so as to use their old notes. This was done to avoid long lines at banks and ATMs
   
• A rumour that salt and sugar will soon be in shortage led to some women standing outside grocery stores till 11.30 pm to buy the same

Source: IASEW