Shehr-e-Khaas Traders Alliance flags trade crisis, seeks policy interventions
Srinagar, Jan 28: The Shehr-e-Khaas Traders Alliance has written to Chief Minister Omar Abdullah, flagging what it described as an escalating crisis in the trade and retail sector and seeking urgent policy and budgetary interventions ahead of the 2026–27 fiscal plan.
In the letter addressed to the Chief Minister, the traders’ body said the trade and retail sector—Jammu and Kashmir’s largest private employer—was facing an existential challenge due to prolonged liquidity stress, high borrowing costs and structural bottlenecks. The Alliance cautioned that without timely intervention, thousands of small and medium traders could be pushed out of business.
The letter called for immediate fiscal cushioning through a five per cent interest subvention on existing working capital loans for MSMEs to counter prolonged seasonal slowdowns. It also sought a one-time relaxation in credit scoring norms, including CIBIL amnesty, for entrepreneurs impacted by disruptions since 2019, warning that many traders have been locked out of formal credit despite being otherwise viable.
Seeking relief on statutory liabilities, the Alliance proposed the introduction of a comprehensive “Settlement Scheme 2026” covering power bills and municipal taxes for commercial establishments. It further recommended creation of a unified digital single-window portal for business loans to streamline approvals, clearances and collateral verification, thereby reducing delays and transaction costs.
Highlighting logistics-related losses, particularly due to frequent closures of the Jammu–Srinagar National Highway, the Alliance urged budgetary provision for a dedicated transport logistics hub. It also proposed a state-backed “Digital Disruption Insurance” mechanism to compensate traders for losses incurred during internet or communication outages.
Alliance President Nazir Ahmad Shah, said the forthcoming Budget should serve as a “signal of intent” by addressing structural impediments and enabling the trade sector to transition from survival to stability.
