Flash floods have crippled Kerala’s trading sector, says merchant body

Waterlogging at Illickal Junction on the Kottayam–Kumarakom Road in Kerala on Monday | Photo Credit: VISHNU PRATHAP The flash floods that struck several districts in Kerala have delivered a crippling blow to the trading sector, said P. Niazar, president of the Kerala Merchants’ Chamber of Commerce (KMCC), in a statement issued here on Monday (August 3, 2026).Hundreds of firms have reported damages running into crores. Traders who had stocked goods in bulk, often on credit, anticipating the Onam market, are among the worst affected. Entire life savings and capital investments in businesses were wiped out within hours of the floods. Small traders without insurance coverage for their stock and equipment now face a severe financial crisis. Many firms may be forced to shut down unless the government steps in with effective intervention, Mr. Niazar cautioned.Plea for relief packagesHe urged that government officials be deployed in flood-hit areas to assess the extent of damage and distribute compensation at the earliest. A separate relief package should be announced for disaster-affected traders. At least a year’s moratorium should be declared on bank loans. Mr. Niazar also sought concessions and extended deadlines for the payment of GST, electricity fixed charges, and local body licence fees.The association demanded that the trading community be granted packages similar to those extended to flood-affected farmers and households. “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,” said V.E. Anwer, KMCC general secretary. Published - August 03, 2026 04:41 pm IST