The retail industry in the Northeast, hit hard by the Covid-19 pandemic with losses estimated at Rs 10,000 crore, is looking for government assistance while trying to keep the home and hearth of their employees going.
Business dipped as low as by 100 per cent in non-essential items like apparel, jewellery, shoes and consumer durables information technology (CDIT) like electronics, IT and telephones following closure of shops nationwide.
“The lockdown is necessary but we need timely government’s assistance on working capitals and GST relaxation in the retail industry,” Sandeep Jalan, CEO, Sohum Shoppe, Guwahati told The Telegraph.
Raja Gohain, a distributor-cum-retailer of Casio India, Guwahati, said, “I have incurred a loss of Rs 1.5 crore in distribution sales and Rs 65 lakh in retail sales. The government needs to act fast or the industry will collapse.”
Thirty per cent of the annual business that the industry makes comes from sales generated during the month of March and April with the celebration of Rongali Bihu, Ramazan and other festivals, sources in the industry said.
The Retailers Association of India (RAI) said recovery of retail industry may take a minimum of three quarters for the sector to stabilize post easing of the lockdown across the country, including Northeast.
The association said the future is bleak for the Indian retail industry and unless the government provides timely assistance there could be a loss of around 80,000 jobs across the entire retail chain in the country
Reporting no job losses, traders in Guwahati said although they have hit rock bottom in the industry, they are still managing their employee’s sustenance by paying their salaries for the month of March. April salaries will also be paid as per the basic requirement of the times.
“But it will be very difficult to shoulder the responsibility of employee wages alone for long periods without goods moving off the shelves. We need orders for opening our malls and shops as early as possible,” a trader said.
“Retail is all about people and relations, we can never think of deserting them at a crisis of this magnitude,” said Umesh Sethi, owner of Apparel retail outlet.
Kumar Rajagopalan, the CEO of RAI, said in the absence of major support, 20 to 25 per cent of retailers may be out of business or will need financial infusion to stay afloat.
The association has made many submissions to the government and financial institutions asking for support and assistance on working capital, moratorium on loans and credit lines and safe opening of retail outlets and assistance on wages to save millions of jobs. The traders are all eager to reopen shops and malls.