Devastating floods in Jammu & Kashmir has left the wholesale markets in the walled city of Delhi poorer by at least Rs 1,100 crore. The markets in the lanes and bylanes around Chandni Chowk are the trading hubs of north India and Jammu and Kashmir is among their client states. The centuries-old trade is based on credit and with catastrophe hitting the Himalayan state, the chances of recovery of payment against supplied goods is now remote.
The worst affected are the mercantile bodies, trading in cloth, readymade garments and yarn. The losses are estimated to be around Rs 600 crore. As the valley has a vast market of mercantile items especially ladies suits, kids wear, readymade and woolen clothes, around 1000 mercantile traders of the city under the banners of Katra Neel Traders’ Association and Delhi Hindustanti Mercantile Association sell their products to shopkeepers in the state directly.
With shops marooned, the recovery of supplies is almost impossible. Since most of the trade is done in the traditional way of cash transaction, insurance of supplies is seldom done. With the tourist season spread over four summer months were coming to end, huge payments were expected before flood waters entered the valley. The revival of trade would take almost a year.
‘The floods have affected trade in the Capital. In this situation, neither can traders get payment nor can they send fresh consignments. Even there is no provision for compensation in such cases. The floods in the Valley would leave many a trader in Delhi bankrupt,’ said Jasbeer Singh, president of Katra Neel Traders association.
Like these two associations, dozen others trade with Jammu & Kashmir from Chandni Chowk area and they too have run into trouble. Although they have not suffered such huge losses as mercantile traders but they are concerned about the future of their business. Traders dealing in electronic goods, cosmetics, chemicals, toys, artificial jewellery and other items have not heard from their clients ever since the floods. ‘As we have lost our contacts, we cannot enter in fresh trade. As per the prevailing situation, it will take six to twelve months for the situation to normalise and till then we have no option other than to live with our losses,’ said Sushil Goyal, member of Chemical Merchant Association.
The business of dry fruits, which is a major source of revenue for people of J&K, has also been affected and has had a cascading effect on trading in Khari Baoli, where the estimated losses have been accounted to be around Rs 200 crore. ‘We purchase farms in Kashmir by paying in advance. The floods have marooned these farms completely. We would now have to wait for the next season to make up our losses. As supply has stopped completely, prices of dry fruits are also soaring and during the festival season of Navratra and Diwali, it is likely to be doubled,’ rued Sunil Bindal, a dry fruit trader from Khari Baoli. Trade of fruits, vegetables and other items, which come from J&K, are also affected. Traders at Asia’s biggest fruit and vegetable market of Azadpur Mandi in North Delhi are left twiddling thumbs as supplies from the Valley especially of apples have completely stopped.