Amid the peak season during Christmas, bakeries in West Bengal have been struggling to continue their operations with stressed working capital as banks in the state were refusing to accept coins.
"The banks are not accepting coins when the bakeries are going to deposit them. We have been complaining to authorities concerned, including the Reserve Bank of India, several times," said Idris Ali, Secretary of Joint Action Committee of Bakeries in the state.
"Non-acceptance of coins by banks for the past few months has led to locking of working capital and thus, continuing operations become unviable to many bakeries."
Nearly 50 per cent of their sales of small bakeries were made through coins.
According to bakery owners in Howrah, a key district of producing bakery products, they were not able to utilise coins through their trade channels.
"Neither banks nor are our material (like sugar, flour, etc) suppliers accepting coins. Even, workers are not accepting wages in coins. Many of us stopped manufacturing cakes," a bakery owner said, adding that the costs of manufacturing have gone up after the implementation of Goods and Services tax (GST).
"Unless the situation improves, many small bakeries are expected to shut down," he added.
--IANS
bdc/vd
Disclaimer: No Business Standard Journalist was involved in creation of this content
