Currency Ban Stumps Asia's Largest Wholesale Electronic Market

"Are you accepting 500 or 1000 rupees?" was a question that echoed across the chaotic and noisy streets of Chandni Chowk, one of Delhi's oldest markets and perhaps markets across India on Wednesday.

Row upon row of shops wore a deserted look as most customers stayed away. The scene was almost identical in adjoining Bhagirath Place market and the old Lajpat Rai market, south Asia's largest wholesale electronic market. The customers who came were turned away as most had 500 or 1000 rupee notes.

"I usually have a sale of more than one lakh rupees for my solar panels on an average day, today I haven't even made 5 rupees," said Sudhir Gupta, who runs a small solar power shop in the wholesale market. It's a similar story in other shops.

Chandni Chowk is dominated by the trader community that largely included BJP supporters, but many shopkeepers were visibly anxious and angry with the sudden decision that caught everyone by surprise.

"I have a cell phone shop in Nainital and came here to buy some cell phones, but no one was ready to sell anything. These 1000 rupee notes may just as well be counterfeit notes as no one will touch them," said Gajender Singh who had come to buy cell phones in Lajpat Rai market.

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Others were more direct in conveying their dashed hopes. "This is like misleading everyone, the government first said that they would deposit Rs 15 lakh in our bank accounts but now they have everyone scrambling for change. I am a small trader but I feel that if our BJP representative comes out he will be beaten up," said a small trader.

While most people say that they welcome steps to curb black money, they also believe the government should have brought in smaller denominations into the economy before banning existing 500 and 1,000 rupee notes.

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"The fact is that if the government had disclosed this earlier... then many people may have misused the time to get rid of the black money ...we need not panic for two days... we should look at the long term growth" said a publisher who had come to meet clients in the market.

The area's Market association says that their losses could run into several thousand crores and are keeping fingers crossed for the banks to open on Thursday and more clarity.