Categories: Economy

About 1.5 crore retailers could go bankrupt: Khandelwal

<strong>The Finance Ministry may soon announce a Rs 1.3-1.5 lakh crore relief package</strong>

The national lockdown in the country following the spread of the deadly coronavirus is likely to push about 1.5 crore traders and retailers into bankruptcy. Not just that, another more than two crore people engaged in the retail sector could lose their livelihood, Confederation of India Traders (CAIT) secretary general Praveeen Khandelwal told IN.

Amid this crisis, the Finance Ministry is looking at carving out a relief package of about Rs 1.3-1.5 lakh crore relief package for the traders. The announcement could be made by Finance Minister Nirmala Sitharaman in the next few days, sources said.

There has been no revenue for almost 5 crore retail establishments. At present there are about seven crore traders and retail establishments, giving employment to about 40 crore people, according to CAIT.

Indications are that the lockdown will be extended by at least two more weeks. The lockdown, which came into effect from March 25, was to end on April 14. “There has been no income for the traders for the last few weeks, it is not easy for the country's traders and retailers therefore to pay their employees,” Khandelwal said.

He also said that customers will refrain from visiting the markets even after the lockdown is lifted. “We do not see customers coming into shops and marketplaces before June-July, it will take another one month after the lockdown for customers to start visiting the shops,” he added.

CAIT estimated the overall loss in the Indian retail segment the last 15 days to be around $30 billion. According to CAIT, things will not be normal for the trading community before the end of the second quarter.

Meanwhile, Commerce and Industry minister Piyush Goyal held a virtual meeting with the traders last week to assess the situation.

While shops and grocers dealing in essential items such as fruits, vegetables, milk and medicines have been exempt from the lockdown, the supply chain has been dented. Hundreds of traders complained of their supplies getting choked due to disruptions in the transport segment. Many traders dealing in grocery items and medicines have even been denied electronic passes, required to move around in the country during the lockdown..

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

Pak: Another girls’ school in South Waziristan bombed

In another tragic blow to girls' education in Khyber Pakhtunkhwa amidst the ongoing wave of…

5 hours ago

WHO, experts meet to strategise strengthening community engagement; resilience in health emergencies

Against the backdrop of recent crises, such as the COVID-19 pandemic, health officials from across…

5 hours ago

Baloch activist condemns Gwadar fencing project, cites CPEC as cause of encirclement

Mahrang Baloch, a Balochistan-based activist, said on Saturday that the fence around Gwadar was not…

5 hours ago

“Situation in Bishkek calm”: Kyrgyzstan Foreign Ministry after India issues advisory

Kyrgyzstan's Ministry of Foreign Affairs has said that the situation in Bishkek is calm and…

19 hours ago

“Pakistan is roaming with begging bowl, enemies tremble due to our ‘dhaakad’ govt”: PM Modi

Prime Minister Narendra Modi on Saturday said that enemies of the nation have to think…

20 hours ago

Tibetans rally for release of 11th Panchen Lama amid China’s controversial appointment

In a display of solidarity, exiled Tibetans gathered in Dharamshala on Friday, demanding the release…

20 hours ago