Post Nipah, the economy of Kozhikode had been slowly recovering, but the recent floods have once again paralysed business in a city known for its long tradition of trade and commerce.
“We hoped the Bakrid-Onam market in August would bring in some normality after business began picking up. Now, floods have devastated everything. The situation is so pathetic. Several shops are being shut down due to poor business. Some others are going for distress sale before closure,” said C.E. Chakkunny, president, Malabar Development Council.
Business at Big Bazaar (Valiyangadi) and the iconic Sweet Meat Street had already been hit following the ban on parking or entry of vehicles, especially to the commercial street. “Many have vacated rented shops, as they were not able to repay dues. It is a double whammy for small traders after the implementation of GST,” he added.
Even merchants are planning to vacate buildings owned by the corporation at Palayam and Railway Station Link Road. A year ago, a trader had to shell out ₹60,000 for a shop at Palayam. The rates dwindled to ₹45,000 two months ago. Now, the shop was auctioned at ₹30,000 to a ready-made garment dealer, K.K. Mohammed Basheer, a trader said.
Poor business has also prompted traders to introduce shift system for their daily-wage employees instead of laying them off without notice. Many have been asked to work three or four days a week. “The crisis is so severe to deal with. Now, the government is planning to levy GST to fund reconstruction,” said P.A. Jayaprakash, director, Calicut City Service Cooperative Bank.
Traders usually offer credit to clients at Thiruvamabadi and other hilly regions in the district. Now, many are not able to repay debts,” Mr. Chakkunny, who is also president of Goods Distributors Association, said, adding that brisk activity had been witnessed at shops that sold relief materials a few days ago.
P.S. Abdul Gafoor, who runs a wholesale sports goods shop at Oasis Compound adjoining S.M. Street, said the demand for trophies and mementos used to be high during Onam season. “Now, with residents associations doing away with celebrations following the floods, the entire stock remains unsold. The sale of sports goods in the city is almost nil,” he added.