A compelling photograph has recently surfaced across social media platforms, displaying a storefront adorned with a heartbreaking plea: “Do not Ashame yourself by asking for credit. Kindly refrain from soliciting credit.” A multitude of perspectives and narratives emerge from netizens and stakeholders within the community. To my surprise, I was tagged by acquaintances in conjunction with this very post. This begs the question: what motivated the proprietor to take such harsh action? As a steward of my own establishment, having negotiated its obstacles for more than three months, I feel motivated to understand the reasoning behind this public announcement.
I recently wrote an article entitled “An Average Kashmiri’s Average Life,” in which I delved deeply into the numerous obstacles that merchants and business owners face in the Kashmir region. Currently, after the implementation of CST and GST, profitability remains elusive, with a modest nine to ten percent margin constituting the hard-earned benefits for the merchants working against the odds. It might be argued that a 10 percent profit margin, far from being inconsequential or evasive, is indeed attainable. However, it is imperative to acknowledge the myriad challenges confronting shopkeepers, who must contend with overhead costs such as rent, electricity bills, and administrative fees. Furthermore, the specter of losses looms large, manifested through expiration and other unforeseen hazards like dishonesty by customers and intrusion of rats and mice in the shops.
Shopkeepers are compelled to settle their accounts with distributors within a mere seven-day timeframe. Failure to meet these obligations could result in the forfeiture of stocked inventory. Consequently, shopkeepers find themselves entangled in a contractual bind, left with no recourse but to navigate the terms dictated by the distributor, devoid of alternative avenues. In contrast to the shopkeeper’s constrained circumstances, customers enjoy the freedom to patronize any supplier of their choosing, unbound by contractual obligations. Yet, the photograph depicting the shopkeeper’s plea against extending credit underscores a crucial point: reliance on credit transactions can imperil the livelihood of the shopkeeper.
Consider a scenario where a customer accumulates a month’s worth of stock valued at seven thousand rupees. According to the ten percent profit margin, the shopkeeper anticipates earning seven hundred rupees. However, if the customer only remits five thousand rupees, the shopkeeper is left with nothing to show for their efforts. Indeed, the shopkeeper finds themselves ensnared in a precarious predicament, compounded by the necessity of settling accounts with distributors upfront. This financial burden precipitates immense hardship, compelling the shopkeeper to seek recourse in the form of loans, whether from financial institutions or from family and acquaintances. Such indebtedness serves as a relentless vortex, threatening to engulf the shopkeeper in a cycle of financial strain and uncertainty.
In my perspective, the tireless dedication of Kashmiri shopkeepers stands unrivaled, with grueling 12 to 14-hour workdays distinguishing them from their counterparts in other professions. Despite their Herculean efforts and substantial investments in both time and capital, they find themselves barely scraping by. The underlying enigma lies in the elusive nature of profit margins, exacerbated by the formidable challenges pervading Kashmir’s business landscape. Within this milieu of adversity, the people of Kashmir grapple with entrenched poverty and a dearth of employment opportunities, rendering the pursuit of financial stability an elusive quest. In such a scenario, the sobering reality emerges: for many, the toil of earning fails to match the burden of expenditure, leaving them solely focused on meeting their most basic needs.
The writer can be reached at [email protected], X: @peermohdamir

Peer Mohammad Amir Qureshi