Demonetisation Hits Raipur’s Iron And Steel Traders Hard

14 November 2016

On Tuesday, the government surprised the country by announcing that all Rs 500 and Rs 1000 notes will cease to be legal tender in an effort to unearth black money and counterfeit currency. The sudden ban and lack of adequate new currency notes has prompted a liquidity crunch across industries especially smaller and medium sized businesses that depend on cash transactions.

One such segment is the iron and steel trade industry in Raipur, where according to the Raipur Iron and Steel Trade Association president Sanjay Jain, the demonetisation drive has led to a severe drop in business, which in turn means that manufacturing units are on the verge of shutting down.

Jain claims retail trade has been hit the most, not just in Chhattisgarh, but across the country. He added that manufacturing continues in some pockets but with the lack of funds may bring it to a halt. Besides, the cash crunch has meant few buyers in the market.

Source – BQ