- Title: Delhi's vegetable market crumbles under cash crunch
- Date: 17th November 2016
- Summary: NEW DELHI, INDIA (NOVEMBER 17, 2016) (REUTERS) A VEGETABLE VENDOR AT DELHI'S AZADPUR WHOLESALE MARKET AUCTIONING HIS LOT OF TOMATOES TO CUSTOMERS CLOSE OF THE VENDOR AUCTIONING HIS TOMATOES HANDS OF CUSTOMERS CHECKING OUT TOMATOES KEPT IN A CRATE CUSTOMERS STANDING ANOTHER VEGETABLE VENDOR, RAM SEWAK, STANDING CLOSE OF SEWAK'S HANDS CRUSHING TOBACCO (SOUNDBITE) (Hindi) VEGETABLE VENDOR, RAM SEWAK, SAYING: "I was just preparing my tobacco while pondering over whether to buy or not to buy tomatoes. Business is really down, no one is accepting 500 rupee bills, this is a big problem for us. I have one 500 rupee note and want to buy tomatoes but they are not accepting that - this is my problem." PEOPLE GATHERING AT VEGETABLE MARKET / TRUCKS PARKED IN BACKGROUND MAN SLEEPING ON A TABLE MAN MOPPING FLOOR / MEN PLAYING CARDS CLOSE OF CARDS IN A MAN'S HANDS MAN CHECKING HIS CARDS MORE OF MEN PLAYING CARDS (SOUNDBITE) (Hindi) COMMISSION AGENT AT DELHI'S AZADPUR WHOLESALE MARKET, RAGHUBIR SINGH, SAYING: "We are neither getting any cash nor are we able to pay any cash. Farmer wants small currency bills from us and we do not have the small bills. We try and deposit our big notes in banks but there is so much rush that it is not possible to go and deposit money in the banks. We also need to pay money to the vehicle owners for the transportation of goods, their rentals are about 100,000 rupees ($1,472), from where do we get 100,000 rupees to pay them?" CUSTOMERS NEGOTIATING WITH VENDORS AT THE VEGETABLE MARKET CLOSE OF PILE OF PEPPERS MAN GETTING A SHAVE BESIDE PILE OF ONIONS CLOSE OF THE MAN GETTING HIS FACE SHAVED VENDOR LOOKING AT HIS MOBILE PHONE / PEOPLE WALKING BY (SOUNDBITE) (Hindi) DAILY WAGE LABOURER AT THE WHOLESALE VEGETABLE MARKET, RAJU KUMAR RATHORE, SAYING: "We are facing a crisis here. We earn about 300-400 rupees ($4-5) per day, now the bosses are giving us 500 rupee bills, but we are refusing to take those notes. Then they are telling us to collect our money after week to ten days, For us that is a big problem. There is no work in the market, everybody is sitting idle." MAN COMBING HIS HAIR MEN SITTING AND TALKING VENDOR SORTING HIS TOMATOES VARIOUS OF VENDORS PICKING OUT TOMATOES FROM A CRATE MEN CARRYING EMPTY CRATES AT THE VEGETABLE MARKET TRUCKS PARKED AT THE VEGETABLE MARKET
- Embargoed: 2nd December 2016 15:09
- Keywords: Azadpur vegetable market New Delhi demonetisation vendors farmers Narendra Modi
- Location: NEW DELHI, INDIA
- City: NEW DELHI, INDIA
- Country: India
- Topics: Society/Social Issues
- Reuters ID: LVA00158TY98D
- Aspect Ratio: 16:9
- Story Text: A severe cash crunch has nearly brought Delhi's wholesale vegetable market to a halt, disrupting supplies as sellers, buyers and commission agents search for elusive currency to trade their wares amid rising concerns of a spike in prices.
India's move to abolish two of its largest bank notes - 500 and 1,000 rupee bills - to fight tax evasion, corruption and forgery has left the vendors at the Azadpur vegetable market high and dry.
The usually bustling market was witnessing rare scenes of traders struggling to auction even five crates of tomatoes, due to lack of usable cash in the hands of traders.
"I was just preparing my tobacco while pondering over whether to buy or not to buy tomatoes. Business is really down, no one is accepting 500 rupee bills, this is a big problem for us. I have one 500 rupee note and want to buy tomatoes but they are not accepting that - this is my problem," said a vegetable vendor, Ram Sewak, on Thursday (November 17).
Azadpur is India's biggest fruit and vegetable market and a lifeline for fruit and vegetable traders from the entire northern Indian belt. Every day thousands of trucks bring fresh produce from all over the country to be distributed to medium and small traders.
The vibrant market supplies more than 15,000 tonnes of fruits and vegetables to Delhi and the National Capital Region (NCR) on a daily basis, besides catering to consumers in most north Indian cities.
Transactions worth millions take place at the wholesale market every day. After buying the produce at lower prices from here, traders immediately send it to consumer markets in large cities.
Retailers were facing a hard time too, said a commission agent, as the huge rush at banks and government caps on withdrawal had left them cash strapped.
"We are neither getting any cash nor are we able to pay any cash. Farmer wants small currency bills from us and we do not have the small bills. We try and deposit our big notes in banks but there is so much rush that it is not possible to go and deposit money in the banks. We also need to pay money to the vehicle owners for the transportation of goods, their rentals are about 100,000 rupees ($1,472), from where do we get 100,000 rupees to pay them? ," asked Raghubir Singh, a commission agent at the wholesale market.
Banks and ATMs across the country have been witnessing chaotic scenes since last week as people clamour to get their hands on the new bank notes.
The government has asked people to exchange the old 500 and 1,000 rupees notes by Dec. 30. Reserve Bank of India (RBI) has said there was enough cash available with banks and people "need not be anxious" but the rush continues.
With customers hard to come by, some traders in the market used their free time to play cards, catch a napping or get a shave.
The government's currency clampdown has also hit the labourers who cut the produce, pack and load it into trucks.
With no cash in hand and no work, daily wage labourers are struggling to make ends meet.
"We are facing a crisis here. We earn about 300-400 rupees ($4-5) per day, now the bosses are giving us 500 rupee bills, but we are refusing to take those notes. Then they are telling us to collect our money after week to ten days, For us that is a big problem. There is no work in the market, everybody is sitting idle," said Raju Kumar Rathore, a daily wage labourer.
The move to demonetize the large bills is designed to bring billions of dollars' worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.
Indian Prime Minister Narendra Modi's ruling Bharatiya Janata Party (BJP) came into power in 2014 promising to bring billions of dollars of black market money into the regular financial system.
India's "black economy", a term widely used to describe transactions that take place outside formal channels, amounted to around 20 percent of gross domestic product, according to investment firm Ambit. - Copyright Holder: REUTERS
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