INDIAN MARKETS - A JEWEL TARNISHED BY COVID 19

Since times unknown, the local markets have carved an important place in the daily life of a common Indian household. And why shouldn't they? After all, they are not just a hub of getting all the necessities and utilities required in a person's routine life but also act as a short 'switch off' against the continuous supply of daily stress they go through.

The marketplace or the local 'bazaar' has always been an important feature in the city settlements during the Mughal and the Colonial Era. They have not only been a source of trade and commerce but also of recreation and socialising.

A medieval era bazaar in Delhi- Source: Cutler Miles

The entire world came to a halt due to the COVID 19 pandemic which spread across continents rapidly, faster before anyone realised. Many countries including India underwent complete lockdown to fight the deadly virus. The lockdown posed threats to the existence of Indian markets and to the livelihood of those who depended on them with almost negligible glimmer of hope in the near future. The cruel effect of the lockdown and the threats caused by the novel coronavirus on this jewel of Indian economy was inevitable.

“We had an option of saying no to a passenger before, now we hardly get any.” says an auto driver waiting for a passenger near the Sarojini Nagar market in New Delhi. Known for the jam packed crowd this market used to host each day, it now is a witness to its deserted lanes and streets. Sarojini Nagar market is a dream for bargain hunters and shoppers who demand trendy outfits but at pocket friendly prices. It stands unique amongst other famous markets in New Delhi as it not only home to branded stores but is a fan favourite for street shopping. The lockdown has done a long lasting damage to this famous market. Many street vendors lost their sources of income almost instantly when the lockdown was announced.

The city calls itself home to a number of famous markets since decades. From the posh stores of Khan Market to the famous congested streets of Chandni Chowk, none was spared from the wrath which came in the form of lockdown and its burdensome consequences.

Shutting down of shops and marketplaces has caused immense economic loss but even the ease in lockdown restrictions didn't compensate much towards the loss of business they suffered during the two month long lockdown. The Confederation of All India Traders (CAIT) reports that approximately 65-70% shops in such markets across India are not owned by the shopkeepers themselves but are either rented or leased. Lack of business saw shopkeepers paying high rent for the shops and salaries to the salesperson from their own pockets. While some shopkeepers sought to pay only 30-40% of the salary to their employees, others chose to relieve them off their jobs. The situation starts worsening as we move down the market hierarchy of employment. The worst affected are the street vendors and employees at small shops who work on a 'hand to mouth criteria'. “We earn during the daytime and feed our families with whatever we earned that day. We don't have any savings and these two months we were almost on road”, says a street hawker in Karol Bagh market with a not so subtle pale and gloomy look on his face.

Deserted Sarojini Nagar during lockdown- Source: HT/Getty Images

While many of the small shopkeepers chose to adopt alternative sources of income like selling vegetables and fruits during the lockdown, many street vendors from the Colaba Causeway, Mumbai had no option but to move back to their hometowns and small villages in Maharashtra. Street vendors and hawkers comprised of almost 20% of the people migrating back to their remote villages. A small shopkeeper from the streets of New Market in Kolkata was reported saying, “We are moving back to our village in Bankura district where we'll sought to fishing and working as daily wage labourers on farms, Kolkata right now doesn't show much hope for our existence.”

The unlock procedure began across the country in a very deranged manner as many state and other local authorities chose to extend lockdowns. This led to the problem of transportation of goods across the local borders. No new inventories could be planned as the shopkeepers weren't sure whether they'll receive the stock in time. The novel coronavirus still caused reduced footfall in the otherwise busy markets. While the opening up of shops in an odd-even manner was almost ineffective for satisfying the consumers towards the necessary precautions being taken, shopkeepers saw people to just stroll around the deserted markets to feel a glimpse of the normalcy but chose not to shop until it was really urgent or necessary. There has only been a marginal increase in the business since last week of May when the lockdown was officially lifted with some restrictions. Shopkeepers still believe in cutting costs in hope for surviving such challenging times. “We have advised everyone to switch off their ACs and use only few lights to cut electricity costs”, said the president of Market Association of Lajpat Nagar.

As Diwali approaches, from the pocket friendly jewellery market of Dariba Kalan to the blingy embellishments of the old Kinari Bazaar, shopkeepers are optimistic that their business will return in two months' time. However India Brand Equity Foundation (IBEF) suggests that markets will see normalcy in their business around the end of the FY2020 and will witness growth during first quarter of the FY2021.

With many global brands losing the battle, Indian local markets are facing a race for survival against time in this COVID era with almost zero to no odds in their favour.

- Noam Shaab