APMC traders to waive interest from retailers

Adversity often brings out the best in people. Even businesses - not normally known for their human touch - have gone that extra mile and stuck its neck out for their less-fortunate brethen.

A case in point: Traders and Wholesalers of the Agricultural Produce Market Committee (APMC) have decided to waive interest from kirana retailers who suffered due to the recent floods.

Usually, semi wholesalers and retailers take grocery items on credit, which they are expected to repay within a week or a month, depending on the commodity. And they are charged interest if they are unable to make the payment within the given time. For most grains and spices they are charges Re 1 per quintal per day.

"Considering the extenuating circumstances, caused by the floods and the extent of loss to property, we have decided not to charge any interest from the retailers. And most traders haven't charged a penny as interest," said Mohan Gurnani, director, APMC, Mumbai.

Apart from benefiting the retailer, not charging interest also works in favour of the wholesalers.

"If they cannot buy, to whom would we sell it to?" asked Gurnani. The market committee has asked the state government also to help the traders with soft loans and quicker processing of insurance claims. Maharashtra chief minister Vilasrao Deshmukh and Union agriculture minister Sharad Pawar have approved the requests in principal.

Also traders' insurance claims aren't being settled fast enough. "It seems that the companies are not keen on settling our claims," said Gurnani. "Companies like United insurance and Oriental insurance are wasting time surveying the market and asking for proofs. Now from where can we bring the proof when everything is destroyed in the rains," said Gurnani.

APMC traders have also distributed 2,500 kits of 15 kg each comprising wheat, rice and ghee, salt to traders. The traders in the vegetable market have given a sum of Rs 1 lakh for the flood victims in the CM relief fund.

APMC is one of the largest wholesale markets in the country and has 5 main markets with around 5,000 traders and trades commodities worth more than Rs 1,000 crore every month. Since it is a commodity market, it has not experienced a sharp decline in the trade, nor is it likely to do so on a long term, said Gurnani.

"Regardless of what disaster hits the city, people have to eat. So there is no question of a long term set back in trading in our market. Sometimes we do see a temporary downfall but that does not continue for long," he said.