Thousands of crores of rupees trapped in lockdown

Posted on 12th Jun 2020 by rohit kumar

The lockdown to prevent coronavirus has broken the business back. In order to bring the economy back on track, the government started the business with conditions, then the problem of the traders started to open. Due to the lockdown, traders lost goods worth lakhs of crores of rupees, out of which a lot of goods went bad and a few goods season ended. This has led to big disputes among businessmen, which business entities are trying to settle.

 

Hundreds of traders from Mumbai's Dadar, Kalpadevi, Colaba, Goregaon, Thane and Bhiwandi send goods worth thousands of crores of rupees daily across the country. Similarly, many products come from other states as well. The deepest root of the dispute is that the traders had sent the goods, which the traders could not get due to the lockdown. The goods which had arrived also remained intact due to the closure of markets and shops. The merchants who send the goods say that the goods were sent on time, so the merchants have to pay. But the traders argue that the goods have not been received and now its season is also over, so what is the payment.

 

 

Readymade clothing wholesaler Sandeep Doshi said that before the lockdown, orders of more than a dozen traders from Kolkata, Kanpur, Bangalore were shipped. But due to the lockdown being implemented, traders were unable to sell clothes. Now the previous money is stuck because most of the traders are not picking up the phone. Latif Bhai of Dharavi said that before Eid, he knows how to prepare certain types of apparel (kaftan), which are bought by him and sent to the Gulf countries. Payment is received after one month. Latif Bhai says that this time a pie has not been found, due to which he is on the verge of destruction. Industry organizations estimate that about Rs 500 crore of Mumbai's textile traders have been caught in a similar manner.

 

 

Business has both lending and advances, which has created a critical situation for businessmen and shopkeepers across the country. Mumbai-based businessmen and trade associations say that the accessories-making industry is stuck with about Rs 100 crore, mobile and electronics businessmen by Rs 5,000 crore and leather traders by over Rs 1,000 crore. Food and beverage traders are also stuck with goods above Rs 100 crore. The Ratnabhushan industry is talking of getting stuck with over Rs 10,000 crore worth of goods. Traders say that the real figures will be revealed after the lockdown is fully opened. All of these figures are suffering. More or less everyone says that the lockdown ruined him.

 

 

Vishal Gupta, trying to get the business back on track in Dadar Bazaar, says the three-month lockdown pushed him back three years. Manoj Upadhyay, who runs a store nearby, said that the peak season of his business was subject to lockdown. Weddings and Eid were not sold, and staff expenses were also to be taken out of pocket.

 

 

Industrialist Rajiv Singal, working amidst shortage of workers and employees, spoke of all-round beating. He said, 'There was not even a chance to open the bundle of goods. Shops were not allowed to open, causing all the goods to remain the same and spoiled a lot of goods. Preparations begin from January to complete the marriage season and Eid orders. Now the wedding season is over and Eid is also gone. So the goods are going to go waste. '

 

 

As the preparation for the festive season starts from January, many businessmen are talking about getting stuck worth Rs 10 lakh crore. There is bound to be a dispute among businessmen due to such a huge cost of production. Ashish Vaidya, president of the Indian Merchant Chambers of Moments, said that there is bound to be a dispute in times of crisis, but companies are being requested to negotiate a settlement. The ADR cell of Chambers has also been preparing to resolve the matter, but the solution will be by mutual agreement only. Vijay Lohia, president of the Bharat Merchant Chamber, said that both the consignor and the buyer of the goods are right in their place in the dispute of loss in lockdown. Therefore, an attempt will be made to avoid legal betrayal. In order to avoid a spate of complaints, the Chamber will resolve both sides face to face.