In order to tide over short supply of low as well as high denomination currency, traders at wholesale markets have decided to go cashless and start electronic payment
Around 300 traders at the onion-potato market in agriculture produce market committee (APMC), Vashi has applied for swipe machines from banks to carry out day-to-day transactions following demonetization of Rs 500 and Rs1000 currency notes. They have requested banks to provide them the machine so that they can take payments from whole sellers as well as semi-retailers.
In order to tide over short supply of low as well as high denomination currency, traders at wholesale markets have decided to go cashless and start electronic payment. “As almost all traders including semi-retailers have bank accounts and they use cards, payment through swipe machines can be done,” said Bharat Shah, potato trader at APMC, Vashi.
Interestingly, apart from the hiccups in the first couple of days following demonetization, business has been as usual at the wholesale market. Shivaji Pahinkar, secretary of APMC, Vashi said: “There has not been much impact at the market following the ban in circulation of the currency. And, the credit goes to electronic mode of payment that traders at the market have been doing for a long time.” He added that traders who buy apples from Kashmir or Himachal Pradesh do not make payment in cash. All such payments are made either through RTGS or any other electronic mode of payment.
“There was a problem in the vegetable and fruit market where spoilage was reported but that was negligible,” said Pahinkar. He added these two markets witness small retailer and they make payment mostly in cash. However, he added that most of the trade take place at APMC between two traders and there is very low involvement of retailers.
According to APMC administration, reputation, credit and electronic payment are major factors that saved the wholesale market from collapsing following the demonetization. The market has yearly turnover is over Rs10,000 crore and major parts of the transaction is done electronically.
However, fruit and vegetables traders have a different version on the issue. Sanjay Pansare, former fruit market director, said: “Business is around 40% down after demonetiation.” However, he accepts that the situation is getting normal.
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