Cash crunch fails to impact city booze sale

New Delhi: Crumbling under the impact of demonetisation, the liquor sales in Delhi registered a considerable fall in the sales with only 25 per cent overall sales in the corresponding week of November 9. However, according to the liquor shop owners, the sales picked up in the second week and have been unmoved since then. Meanwhile, because of tardy exchange and unavailability of new notes, small eateries, cigarette shops and chewing tobacco stalls have been hit as the consumers have started to cut down on discretionary spending soon after the announcement.

Officials said that liquor sale largely remained unmoved since armed with plastic money, people are buying liquor.   

A liquor shop owner said, “A day after the announcement of currency ban was made, the sales had dropped to 20 per cent. It was in the second week the sales picked up a little and now will remain static at 40 to 45 per cent. As the majority of consumers buy liquor through cash, the government-run shops, which amount to 65 per cent, have borne the brunt. On the other hand, the privately owned shops, who have online facility and approximately contribute 35 per cent of the sales, have not felt the pinch.” He further added, “For people like us who have card facility, the sales are happening but we need to see the bigger picture. The sales are happening because the 65 per cent sales, which were being made by the government-run shops, have gone reasonably dry due to the unavailability of online transactions. Therefore, the sales are coming to us.”       

Another wine and beer shop owner located in Amar Colony in Lajpat Nagar echoed the same sentiments.

He said, “Liquor is consumed by a large chunk of the society. Right from the poor to the rich, everyone flock at liquor shops or wine and beer stores. Earlier, by evening it became difficult to manage the counter with a large crowd with their demand for alcohol. There has been a decrease in the rush in last 12 days.

“Many outlets don’t have the facility to let one swipe a card or flash plastic money as over 70 per cent transactions are made by cash. Therefore, it is unlikely that the sales will have an upward trend in total sales given the limited number of outlets with card swiping machines,” he added.

Meanwhile, small eateries, retail stores, and paan shops — mostly the cash driven businesses — has been marred by the high value currency suspension. According to the paan shop owners and eatery owners, they have seen over 80 to 90 per cent dip in the sales.

“Business has crashed. Buyers are not forthcoming and so are the distributors and retailers for there is no liquid cash available in the market. As a result, the availability of new stock has become uncertain. Distributors are demanding new notes whereas the buyers are still reeling under the cash crunch. Hence, business has shut down. The story is no different for small eateries or street food vendors who have been seeing lesser footfall as well,” pointed Bhanu, who owns a small paan shop in Hauz Khas market.