Small shop owners hit hard by cash crunch

CHENNAI: With standalone shops being allowed to function in lockdown 3.0, many traders are in a dilemma whether to open the shops or not.Reason being that they are unable to procure goods from agencies as they haven’t cleared the debts. The situation is grim as most shopkeepers have no money at hands.

The anguished shopkeepers say usually the agents deliver goods and collect cash in a week or two, which ensured that they had enough stock to carry out business. “It is like money on rotation. We get goods from agencies and settle the account in a span of one or two weeks according to the overall sales,” says K Muralidharan Nadar, who owns a shop in Alwarpet.

“When even supermarkets are struggling to get supplies, distribution agencies demand full settlement before adding our names in the list,” says M Dhanapal Rajesh from Porur, who has kept his shop open despite almost empty shelves.

That’s not all. Once the shopkeepers are able to clear the debts, the agencies are demanding cash advance to send fresh stock. “I settled the previous pending bills and now I have to pay advance to order goods. I have already lost my savings and now I will have to borrow money to restart the business,” laments H Jayalakshmi, who owns a grocery store in Santhome.

Agencies distributing essentials prioritise supermarkets as they provide promised returns, allege shopkeepers.