Mumbai: A month after the Centre decided to demonetise the old Rs. 500 and Rs. 1000 banknotes, business at Mumbai’s jewellery market has Reduced to 20% of its previous average sales, say jewellers. After an initial spurt in jewellery sale following the move, the market has been subdued due to liquidity crunch.
“Despite the ongoing wedding season, sales are at around 20% of the average sales for this time of the year. The problem is that people are short of cash and so are unwilling to spend on jewellery.” says jewellery expert Mr. Mahavir Kothari.
“People are badly reeling under cash crunch and they are hardly able to meet their daily requirement of food and vegetables. Even banks are unable to meet customers’ demand of cash. I myself feel difficulties in paying salaries to my staff. How can they purchase gold under this situation?” asks Mr. Kothari.
“Indian consumers are habitual of buying jewellery in cash, one can’t say when this habit would be converted into cashless purchase.
