NEW DELHI: The threat of sealing and demolitions in the Capital after Diwali has severely impacted business and trade with panicky businessmen reducing their existing stocks by 70 per cent and avoiding addition of new inventory, laying emphasis on clearing their existing stocks in view of the uncertain atmosphere.

According to estimates collected by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) through its affiliate trading associations in Delhi, there is a situation of panic as uncertainty over the future of the business activity in residential areas has had a negative impact. ASSOCHAM president Anil K. Aggarwal said Delhi traders and businessmen are raising new inventories to the extent of 30 per cent only of their godown capacities to meet the immediate festive needs of consumers as most fear that with the resumption of sealing it will be extremely difficult to dispose of their stocks after Diwali and Id.

It is for the first time before Diwali that Delhi's traders and businessmen are keeping the shutters of their shops down on their weekly off days in protest against resumption of sealing. This trend is amply visible in the Capital's leading and popular markets of Kamla Nagar, Chawri Bazar, Chandni Chowk, Karol Bagh, Lajpat Nagar, South Extension, Sarojini Nagar, Janpath and Tilak Nagar.

Mr. Aggarwal said Delhi businessmen had so far suffered an estimated loss of Rs.25,000 crores to Rs.30,000 crores on account of clearing their existing stocks, as they have had to reduce the prices of their articles.

In Delhi, there are roughly 50 lakh large, medium, small and tiny business families that are affected by the threat of sealing. Earlier the trend was that about a month or 40 days in advance, businessmen and traders used to accumulate stocks more than their optimal capacity before Diwali and Id to make substantial profits as this was followed by the marriage season.

Mr. Aggarwal said according to the trend over the past four to five years, Delhi had registered business transactions on an average of over Rs.20,000 crore during Diwali and Id but this time the enthusiasm was hardly visible. Most of the articles that would sell during Diwali would include consumer durables.

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