Alcoholic beverages, soft drinks and packages juices: Unlike tobacco products, sale of alcoholic and other beverages has seen a mixed response from the market. Sales have plummeted in rural and semi-urban markets, registering a fall between 90 to 70 percent. In urban markets, especially in metro cities where the number of outlets dealing in cashless transactions is more, sales went down by 50 per cent. The inventory situation, however, continues to haunt distributors and large dealers as they look forward to clear 65 per cent of their stocks by volume, leading to lowering of purchase from the manufacturers.
Personal care, hair care and other FMCG products: Again, inventory in rural supply chain has started to put pressure in traders. Metros are less hit due to a section of consumers opting for cashless transactions at modern retail outlet chains. Rural distributors, kept accepting old denominations for a few days to keep the ball rolling. However, as cash remains out of reach for most stakeholders, they fear that business may stop soon. Meanwhile, inventory of smaller packs, which are mostly purchased by the economically weaker sections, have increased by over 50 per cent across markets. Shampoos, soaps, hair oil, mustard oil, and packaged food like chips, biscuits, instant noodles, pasta, chocolates and confectioneries, among others have been hit badly as consumers tend to save Rs 100 and smaller denominations. Small retailers at urban centres also saw their stocks piling up by 40 per cent.
Chicken, Meat and Eggs:
Falling under the semi-luxury item category sale of meat, currency demonetisation
have taken a toll on sale of chicken and eggs. Traders in rural markets have witnessed over 60 per cent fall in sale of meat and chicken and over 50 per cent for eggs, leading to an increase in inventory at the farmer level. Dealers in cities such as Kolkata, Hyderabad, Chandigarh, Delhi and Bangalore are not relieved either. According to a major meat supplier in Kolkata and South Bengal region, a part of the country known for its predominant non-vegetarian population, his inventory has grown by over 35 per cent in the past few days compared to supply crunch during the festive seasons in previous years. Inventory for eggs in major cities have increased at the range of 20 to 45 per cent.
Not a very sweet affair:
Sweets are items for which production can be adjusted overnight, no such inventory issue has surfaced due to demonetisation.
But sales across the country have been severely hit, leading to cut in production in the past few days. Sale for famous sweet makers in Kolkata have gone down by almost 70 per cent during the last five days as most of them cannot process transactions using debit and credit cards. In Delhi, a majority of the shop owners complained about sales going down by over 50 per cent. However, larger operators like Haldiram's and other outlets in metro stations with card swiping machines or online payment options are less affected. Ice cream sales have been impacted too. Due to the very nature of the product, brands are weary of their existing stocks and some have already initiated a production cut.
Small eateries: Being the worst hit sector as consumers with Rs 100 notes are keeping their purse tight for unnecessary expenses. Most in Delhi said, they have nearly run out of business and had to incur losses during the first two days. Since then they have cut down their daily operations.