Covid-19 impact: Retail loss due to lockdown at Rs 13 lakh crore since April

Though there is no countrywide lockdown this time, the severe restrictions in the second Covid wave has taken its toll on retail business. Since April 2021 till the middle of May, the loss of the retail business of the country has amounted to about Rs 13 lakh crore, claimed Confederation of All India Traders (CAIT).

CAIT, one of the largest body of traders, has described the loss as huge and non-adjustable.

CAIT office bearers say there are at least 8.2 crore small and medium traders in the country. The total business per year is estimated about Rs 112 lakh crore, said Pravin Khandelwal, secretary general, CAIT.

The trader body conducted this study between of April 2 and May 16, 2021.

“We estimated the state wise loss of internal trade and found that total trade and commerce loss due to COVID-19 for the country stands around Rs 12-13 lakh crore, which is more than 10% of the total business volume.” said Khandelwal.

It is estimated that the second wave has caused a loss of about Rs 8 lakh crore to retail trade while wholesale trade suffered a loss of about Rs 5.50 lakh crore during the past 45 days, CAIT said.

Nothing for traders

An office bearer of the body said though during the first wave the Centre offered ‘Atmanirbhar Bharat’ package of Rs 20 lakh crore, there was almost nothing for the small and medium traders except a soft loan offer.

“The traders were not compensated for the huge loss during the first wave, and now the second wave has badly hit them again. Losses are piling up. We are at a loss about how to survive,” said Suresh Sonthalia, national secretary, CAIT.

State figures

It is estimated that Maharashtra suffered the highest business loss of about Rs 1.10 lakh crore.

Uttar Pradesh is at second with about Rs 65,000 crore while Gujarat stands third with Rs 60,000 crore loss in the second wave.

Karnataka comes at number four with a loss of about Rs 50,000 crore. Delhi and Madhya Pradesh faced losses of about Rs 32,000 crore.

Rajasthan traders suffered a knock of Rs 25,000 crore and Chhattisgarh traders were affected by Rs 23,000 crore loss of business in the last 45 days.

Demand

CAIT has urged Union Finance Minister Nirmala Sitharaman and chief ministers of all states to offer them a financial package that would restore the health of their business when the lockdowns are eased.

“The RBI may also direct banks and other financial institutions to offer loans to traders on easy terms and at low interest rates,” said Sonthalia.