Seven crore small traders, businesses demand Covid-19 relief package

Seven crore small traders, consisting mostly of mom-and-pop establishments, have urged Prime Minister Narendra Modi to intervene and announce a Covid relief package for at least 1.75 crore such businesses which are on the verge of closure.

Representatives from the small traders body from Mumbai, Karnataka and Chennai spoke to DH, saying they neither fall in the street vendors category, to whom the government has committed funds, nor businesses which can apply for formal credit.

“At least 30% kirana shops in Mumbai alone are on the verge of closure. Processed food segment is facing severe pressure. FMCG distributors are witnessing up to 20% sales loss as consumption has drastically gone down in rural areas too,” Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF), told DH.

Food accounts for roughly 58% of the value of FMCG goods sold in the country.

R C Lahoti from the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) also painted a grim picture of the havoc caused by the pandemic.

“More than 50,000 small sweet shops, those selling plastics, toys, bags and other small items have already vanished in parts of Karnataka. They employed thousands of workers and are now seeking employment themselves. There is a severe monetary problem,” he said.

Only 7% of the 7 crore small businesses are able to obtain finance from banks and other financial institutions, while the rest 93% traders are dependent upon informal source like family and friends to meet their financial requirements.

Praveen Khandelwal, Secretary General of Confederation of All India Traders, lamented that there was no provision of even a single rupee for small businesses in the Rs 20 lakh crore package announced by the Union government. State governments had also not formulated any financial assistance for small businesses, he said.