Note ban: Cash crisis hits supply of essential items

New Delhi: While ban on currency has left transporters, farmers, wholesale traders and citizens empty pocketed, a section of the shopkeepers, especially those located in residential areas, have blamed lack of supply resulting in the rise in prices of essential commodities like flour, pulses, oil, milk, and medicines in the city.

According to preliminary reports, the cash crisis has hit the supply of essential commodities with price rise in flour, pulses, bread, and oil by grocery store owners by at least 10-15 per cent, whereas, there has been a considerable dip in the vegetable prices in Delhi and NCR region.  

The cash crisis that has hit the country has brought many weak on their knees with the sudden price surge of essential commodities like flour, oil, and pulses. While the market reports reveal that there has been a rise in the prices of wheat flour by over 15 to 20 per cent in the market, the prices for wheat has gone up by Rs 5 to Rs 10.

As per industry insiders, wheat flour in Delhi was sold at an inflated price last week due to the lack of supply, though enough stock was present in the market. The wholesalers alleged that grocery shop owners have hoarded large amount of grains and are minting money by selling them at a higher price.

“There has been less supply of wheat due to the trucks going off roads and transport being hit hard by demonetisation. Earlier, where around 10 to 12 trucks of wheat used to be transported to the markets in Delhi and NCR, due to low cash liquidity, it has gone down to just 2 trucks. The main reason behind the fall in supply is that the suppliers are demanding new notes, which are unavailable. And when we try to negotiate and sell it to the suppliers in exchange for old currency, we are getting very less amount, which is inversely effecting the common man’s pocket,” said Manjeet, a transporter.

Mr Bansal, a representative of the border transport, said that the truck drivers have been left cash-strapped. “Though the problem of fuel has been taken care of a little, it has left a ripple effect on the entire supply chain in the market right from the top to the bottom,” he said.