Srinagar, Mar 29: With Eid-ul-Fitr just days away, Kashmir’s markets are witnessing a concerning slowdown in sales, reflecting broader economic distress, particularly in the garment sector, where sales have plummeted by 95 per cent.
Trade leader Mohammad Yaseen Khan, Chairman of Kashmir Economic Alliance (KEA), highlighted the struggles faced by businesses across sectors, citing high taxation, declining purchasing power, and financial burdens on shopkeepers.
Speaking on the current market scenario, Khan pointed out that while the festive season usually boosts retail activity, this year’s sales are down by nearly 95% in the garment industry.
“The business community is facing immense difficulties. Shops are shutting down due to lack of sales, and many retailers are unable to clear their dues,” he said.
He attributed the sluggish trade to rising inflation and steep tax rates, stating that this has made goods unaffordable for the common people.
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“Taxes have always existed, but today, they have reached 28%, leaving little margin for businesses. The financial strain is evident as traders struggle with loan repayments taken over the past decade,” he said.
Another trend Khan flagged was the influx of heavy discounts and sales in the valley, which, he suggested, raises questions about sourcing and pricing.
“Suddenly, we see jackets being sold at 40–50% discounts. Where are these products coming from? Who is selling them, and at what cost?” he said.
He added that beyond retail, even the pharmaceutical sector was feeling the pinch, with declining sales despite its essential nature. “The economy is under severe pressure, and inflation has made survival difficult for both businesses and consumers,” he said.
Khan said that businesses were struggling to stay afloat and financial institutions were tightening their grip on debt-ridden traders.
“We are witnessing the collapse of businesses across the civil lines area and beyond. Shops are closing down, and the market is not what it used to be during the festivities,” Khan said. (KNO)
