KICS
is a forum for conversations amongst activists and academics on issues relating to science and democracy.
In order to conduct business, the manufacturers have to trust the firm for honouring its IOUs and till recently, the payment was indeed secure. But for the past four to six months, the traders had begun delaying payments on their IOUs and about 14-15 traders declared themselves bankrupt, creating an unprecedented cash-flow crisis in the market.This could lead to social unrest in the city as over 200,000 people draw their livelihood from the footwear business in Agra, with a fourth of them employed in small and big factories.Rajiv Gupta, a former president of the National Chamber of Industries and Commerce of Uttar Pradesh, said that since about 60 per cent of the domestic footwear trade in Agra was primarily in the unorganised sector, the layoffs in the footwear units were going unnoticed, but it is a fact that in the past month alone, at least 150-200 skilled footwear labourers and technicians have been rendered jobless due to low business volumes.At the root of the crisis is the liquidity crunch. Currently, the traders are busy clearing the payments on their credit notes under pressure of the middlemen, deferring on new purchases in the absence of buyers.
Agra footwear traders going belly up
by Vishal Sharma, Business Standard, 13 November, 2008
Agra footwear traders going belly up
by Vishal Sharma, Business Standard, 13 November, 2008 Knowledge Swaraj
Contact Us
Knowledge in Civil Society (KICS)
# 12-13-450, Street No: 1
Tarnaka, Secunderabad
PIN: 500 017
email:
This email address is being protected from spambots. You need JavaScript enabled to view it.