Tough days ahead for country’s small traders: CAIT
   Date :01-Apr-2020

CAIT_1  H x W:
 
 
Business Bureau :
 
"The traders are expected to pay salaries to their employees despite of the fact that the business activities have been closed due to lockdown," CAIT said
 
 
The Reserve Bank of India (RBI) recently allowed banks in the country to provide a three-month moratorium on fixed-term loan and EMI payments to help millions of people with bank dues during the novel coronavirus pandemic. It has also reconsidered working capital requirement with reduced margin but Confederation of All India Traders (CAIT) on Tuesday said that it sees very gloomy picture ahead. “What will happen after three months? How will the small traders of the country will survive?,” CAIT wondered. The enthusiasm among commercial banks, especially the private sector banks, is missing. They have still not come out with their package in line with the directions of the Reserve Bank of India," CAIT said.
 
“I personally feel that big corporate houses and there manufacturing units may not pay their suppliers, under the pretext that their goods have not been sold or the expected money has not been received. They may come out with fund flow problem. This is cause of big worry,” CAIT National President B C Bhartia said. Payment for supplies made to Government and semi Government departments get delayed as usual. They always have an excuse that fund allocation is pending or bill has been sent for payment but payment is not received. Bhartia also pointed out that though the Government had committed payment to MSME within 45 days, it takes months for an MSME to get the payment.
 
“A new trend has been seen, wherein responsible persons from Government departments appear on television and request to landlords not to pressurise for payment from tenants. A simple question comes in my mind, why these people do not appeal to moneylenders not to mount pressure on traders,” he said. In addition to this, the traders are expected to pay salaries to their employees despite of the fact that the business activities have been closed due to lockdown.
 
“How can traders pay salaries in such a scenario,” Bhartia said adding that the coming months will prove very difficult for the traders. “It has been seen that the Government machinery, Revenue Department never let go even a single paisa after a specific period. Provisions for heavy interest and penalty are there to recover the dues. If the payment is not timely made, the Government machinery would cut power, water telephone, etc. Trader who would not be able to pay the dues on time may face such conditions,” he added. “The banks will also take strong action against defaulter after certain period of time and thus I think traders especially the small traders of the country will face hardship. I strong feel that the Government needs to consider such issues and come out with a comprehensive plan in the larger interest of the society,” he said.