COVID-19 lockdown | Government allows fan shops to open, but uncertainty remains

Shops selling electric fans have been allowed to stay open by the government after the government issued new relaxations on April 21. India is under a lockdown till May 3 to restrict the spread of the deadly coronavirus.

The ministry of home affairs had on April 15 issued a set of guidelines that allowed manufacturing firms to resume in non-containment zones subject to safety protocols being followed from April 20 onwards. To this, shops of educational books for children and electric fan shops have been added by MHA on April 21.

Self-employed persons like plumbers and electricians as well as certain agriculture-linked activities were also allowed in non-hotspots on the condition that standard protocols of hygiene and social distancing are  followed.

Electrical goods firms had sought permission from the government to sell essential products like wires and fans. Fans are an essential commodity across India which faces extreme heat from mid-March to June. While a nod has been given, it is not clear that for how long can the stores can operate and terms/conditions to open stores.

In India, about 6.5 crore fans are sold every year. The size of the fan industry in India is around Rs 11,000 crore.

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"We don't know what are the operating protocols. Most of our channel partners sell an array of products, including fans. So, if the store is open, will they only sell electric fans?" the Vice-President of an electrical goods firm told Moneycontrol whed asked about his firm's plans.

Stores are also finding it a challenge to open up without having necessary staff force. Since fans are an essential product during summer, it is a possibility that there could be crowding in stores in a rush to buy products.

“How will we handle the demand? In our shop-floor strength of eight people, six people have gone back home. The store cannot operate without people,” said a pan-India fan distributor.

Another large West-India based distributor said that if the government has relaxed rules, transport facilities should also be made available for store owners.

"We don't own cars to get workers to the store. How will the fan shops open then?" he asked.

The MHA directive only mentions 'shops of electric fans' but has not clarified whether large electronic retailers will also be allowed to sell fans.

The other worry is that how will the fan makers transport the inventory to the stores. Special passes are required across states for movement of transport vehicles.

"If shops selling electric fans are allowed to sell, then manufacturers would also need to be active for spare parts of products and service requests. Unless the entire ecosystem is facilitated, what is the use?” said the head of a mid-size white goods firm.

As on April 22, shops selling electric fans have not yet resumed widespread operations. These stores are awaiting further clarity from both the central and state governments on transport and goods sale.

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