As if the hassles of exchanging money is not enough, the Notes Ban is going to sting the common man further. It is emerging that there is a huge demand-supply gap in retail markets leading to an escalation of prices of essential commodities. Wholesalers are sitting on the stocks but are refusing to accept old currency notes from retailers and stopping supplies.
Prices of essential commodities have shot up to 30 percent since the last five days with major impact being felt in the prices of rice, pulses, sugar and salt and they are expected to increase further. The existing stocks with the retailers are nearing exhaustion with Karthika Purnima and ongoing Karthika Masam demand.
Small Retailer Traders are in for huge losses as they are even giving supplies on loans to their regular customers. The situation is expected to be the same for at least a couple of months the traders say which means very soon the inflation will be at an all-time high.
