Bhartiya Udyog Vyapar Mandal has written a letter to Ministry of Commerce and Industry and represented about Major problems to be faced by Retail sector due to the effects of COVID-19 and assistance for it’s survival from the Government of India. Text of the letter is as follows:
BHARTIYA UDYOG VYAPAR MANDAL
H.O.: 11 Gola Cottage IInd Floor, 4598, 12-B, Ansari Road, Daryaganj, New Delhi- 110 002
Ref. No. 15/20
Dated: 24th March 2020
To,
Head of the Department
Internal Trade Section,
Department for Promotion of Industry and Internal Trade
Ministry of Commerce and Industry,
Room No. 368-B, Udyog Bhawan,
New Delhi-110011
Dear Sir
The retail trade is in very bad economic position due to the effects of COVID-19 and no trade is being done due to precautions to be taken as prescribed by the Government of India and further the Sector has to pay the Salary and wages to the Employees for Lockout period and that will also increased the Financial crises of this sector coupled with the interest burden on the Loans taken by this sector. Hence the financial crises is very much alarming for this sector and further the time for normalcy is also not certain so there is financial uncertainty is also there The major problems to be faced by this sector during this period will be summarised as under:-
| S. No. | Problems before the retail Sector due to COVID-19 |
| 1 | No Turnover during the Period. |
| 2 | No recovery from Debtors. |
| 3 | Fixed overhead including salary, Wages and Interest will continue. |
| 4 | Fund shortage for Payment of Interest and EMI. |
| 5 | Shortage of working capital |
| 6 | Loss of quality of stock |
| 7 | Revival of Business after Normalcy. |
The retail industry is being dramatically impacted by social-distancing that is both voluntary and publicly mandated, and our members tell us that the most important support they can get from the Government would be access to credit that can sustain them until consumers are back in the marketplace otherwise survival of the Retail Trade is not possible. The labour and benefit obligations, rents and loan payments are all burdens right now for retailers.
We are representing Lakhs of Retail traders and Small Industrialists and in our opinion without immediate relief, “our Retail Trade and industry will ultimately fail and certainly it will hurt the already troubled Indian Economy.
The Retail sector is already suffering from the economic slowdown hence the COVID-19 has increased the problems of this sector. The retail sector needs following assistance for it’s survival from the Government of India: –
| S. No. | Assistance Needed from the Govt. |
| 1 | Interest subsidy from the Government on Bank interest. |
| 2 | Employment subsidy on payment of Salary and wages |
| 3 | Reduce the rate of Interest |
| 4 | Delay the EMI and Payment of Interest |
| 5 | Relax in Taxes |
| 6 | Announce the revival and Survival package. |
| 7 | Interest free Government Loan and Long term Assistance. |
| 8 | Provide Emergency aid. |
| 9 | Provide Interest free stock Limits. |
It is urged upon that Government on urgent basis should provide the immediate relief to the retail trade which is backbone of the Indian Economy and survival of the same is an essential requirement for crores of traders & their dependents with this sector.
With warm Regards
Thanking You,
Vijay Prakash Jain
Secretary General
9811150010
Shyam Bihari Mishra, Ex-MP
National President, BUVM
9919491369/9415431364
