Kerala floods: trading sector hit hard, merchants demand relief package

The flash floods that struck several districts in Kerala have dealt a severe blow to the trading sector, according to the Kerala Merchants’ Chamber of Commerce (KMCC). In a statement issued on Monday, KMCC president P. Niazar said hundreds of firms have reported damages running into crores of rupees.

Traders who had stocked goods in bulk, often on credit, in anticipation of the Onam market are among the worst affected. Many have seen their life savings and capital investments wiped out within hours of the flooding. Small traders without insurance coverage for their stock and equipment now face a severe financial crisis, and many firms may be forced to shut down unless the government intervenes effectively, Mr. Niazar cautioned.

The chamber has urged the government to deploy officials in flood-hit areas to assess the extent of damage and distribute compensation at the earliest. It has also sought a separate relief package for disaster-affected traders, including a moratorium of at least one year on bank loans. In addition, the KMCC has demanded concessions and extended deadlines for GST payments, electricity fixed charges, and local body licence fees.

The association has called for the trading community to be granted packages similar to those extended to flood-affected farmers and households. V.E. Anwer, KMCC general secretary, said, “The trading sector forms the backbone of the State’s economy, providing livelihoods to thousands. Safeguarding this sector is tantamount to safeguarding the State’s economy.”

The floods, which have disrupted normal life in several parts of Kerala, have also caused widespread damage to infrastructure, agriculture, and small businesses. The KMCC's appeal highlights the vulnerability of uninsured traders who lack a safety net during natural disasters. The state government has yet to announce a specific relief package for the trading community, though it has initiated damage assessments in affected areas.

Local business owners and market associations have echoed the KMCC's concerns, noting that the timing of the floods, just ahead of the Onam festival season, has compounded the economic distress. Onam is a major shopping period in Kerala, and many traders had increased their inventories significantly.

The KMCC's statement underscores the need for a comprehensive disaster-response strategy that includes the commercial sector. Without timely support, the chamber warns, the ripple effects could be felt across the state's economy, affecting employment and supply chains.