Demonetization of high value notes hits business in Mangaluru

Mangaluru, Nov 9: An atmosphere of confusion and disorder prevailed in Mangaluru, the commercial hub of coastal Karnataka, after the demonetization of Rs 500 and Rs 1,000 notes.

As expected, the sudden demonetization of high value notes badly affected business on Wednesday. The fishing industry which largely depends on cash transaction was in for a shock. At the Mangaluru Fishing Harbour where at least one hundred boats, both large and medium, arrived from the deep seas early morning, there were very few takers for the catch.

A retired Fisheries Department official pointed out that almost the entire transaction is done through cash and invariably the activities would have been affected on Wednesday.

This, according to Vasudeva Boloor, General Secretary of Karnataka Fishermen Action Committee, has drastically brought down the price of fish in the market. There were very few takers for the catch, he regretted. The situation was similar across the coast, he added.

Toll plaza rush

There was pile-up of vehicles at the toll plaza on Mangaluru-Udupi National Highway near Surathkal on Wednesday following refusal by personnel there to accept Rs. 500 notes for toll fee. The police had to intervene and clear the traffic jam. It was around noon that directions were issued by the National Highway Authority of India barring collection of toll till midnight of November 11.

Gold business dull

Though a few jewellers traded till late on Tuesday night, many said that sales remained dull in Mangaluru on Wednesday, after the high value notes became invalid tender.

There was a steady steam of visitors at a few jewellery units on M.G. Road and Balmatta Road that operated till around midnight on Tuesday. There were also visitors to jewellery units on Wednesday.

A senior Customs official said that the many visits by people on Tuesday night and Wednesday to jewellery units might be because of the announcement by the Centre. The official said that gold purchases in these units had had to be legal and ruled out hoarding of Rs. 500 and Rs. 1,000 notes by the jewellery stores.

Buses accepted notes

Fortunately, the inter-district private and the State government buses accepted Rs. 500 and Rs. 1,000 notes from passengers.

Private and KSRTC buses operating to Udupi, Kundapur, Shivamogga and Puttur also accepted Rs. 500. “We issued tickets to passengers giving Rs. 500 only when we had Rs. 100 with us. When we ran out of money, we had no other choice but to disembark such passengers,” said a conductor of a private bus operating on the Mangaluru-Kundapur route. A conductor of a private bus to Shivamogaa said that he was accepting Rs. 500 notes from passengers.