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Bakeries allege bank refusing to accept coins; cake sale hit

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Kolkata, Dec 25 (PTI) With shops in West Bengal refusing to accept coins, sale of cakes priced below Rs 10 has taken a hit, eluding denizens of the Christmas flavour.

Bakeries, in turn, allege that banks in the state were refusing to accept coins.

According to the Secretary of Joint Action Committee of Bakeries, Idris Ali, for small bakeries and shops almost 50 per cent of their sales realisation happens through coins.

But this time, they are refusing to stock tiffin cakes due to surplus coins as they are facing hurdles in either reusing or depositing those in banks, he told PTI.

"Compared to other years, demand for smaller tiffin cakes priced less than Rs 10 is not robust this year in rural and small towns just due to the problem of coins," Ali said, adding, "The problem is more evident for cakes, priced between Rs 5 and Rs 7, produced locally."

Sources in banks and money lenders in the state say they do not have enough chests to manage such a huge quantity of coins.

Shopkeepers in Kolkata and districts like Nadia and Murshidabad complained that either they are holding 50 to 60 per cent of the stock priced below Rs 10 or refusing to sell those to customers offering to pay by coins.

A majority of the problem is with Re 1 coin.

Owner of a small shop said he is not accepting Re 1 coins and claimed it is out of circulation in the region.

All India Bread Manufacturers Association President Ramesh Mago said the problem of coins remains more or less across India.

"One of our member in Uttar Pradesh had to approach the High court to get coins deposited in banks," he said.

Ali complained, with the small and medium enterprises already burdened with GST, which has pushed several bakery products to the 18 per cent tax bracket from five per cent, the coin issue is like a double whammy. PTI BSM SNS NSD

Disclaimer: This story has not been edited by BW staff and is auto-generated from a syndicated feed.

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