Varanasi, Dec. 25: The famed Banarasi sari has seen its business shrink from Rs 20 crore to Rs 4 crore per day in Varanasi, Prime Minister Narendra Modi's constituency, following the demonetisation.

The familiar swarm of wholesale buyers has died down in the Madanpura, Golghar, Raja Darwaja, Kachchi Bagh and Pili Kothi localities since the note recall was announced on November 8 and curbs placed on withdrawals from bank accounts.

Meraz Anwar, a young weaver from Kachchi Bagh, used to make and sell four high-quality Banarasi saris a month. No trader has yet arrived to buy the four saris he made in November.

"We, Varanasi's one lakh-plus handloom weavers, cannot find buyers any more because it's a cash market," he said.

He has not made any saris in December because he cannot buy the raw material if he cannot sell his November product.

Rayees Ahmed, a weaver turned wholesaler, said he used to sell his Banarasi saris to the retailers at anything between Rs 3,000 and Rs 5,000.

"Now we are ready to part with the saris for Rs 1,500 to Rs 2,500, without any profit. The big retailers used to sell the same saris for Rs 6,000 to Rs 15,000 before the demonetisation, but they are not visiting our areas any longer."

He showed this reporter a few sale deeds that suggested that many traders used to come from Calcutta to buy Banarasi saris from the weavers, which they exported or sold in the big cities.

"The wholesale buyers are sitting idle and waiting for the central government's next move," he said.

Ahmed said the two lakh-plus power-loom weavers were hardly any better off. He said they needed at least Rs 20,000 to buy silk threads and colours worth a month's work but were unable to because of the cash crunch.

"We are getting only Rs 2,500 at the ATMs. The banks don't allow the withdrawal of the stipulated Rs 24,000 at a time and give us only Rs 4,000. Nor can the weavers waste hours in queues every day," he added.

Aqueel Ansari, state president of the weavers' association, said the livelihood of eight lakh people, including the three lakh handloom and power-loom weavers, depended on the Banarasi sari industry in Varanasi.

"The daily turnover has plunged from Rs 20 crore till October to Rs 4 crore now," he said.

"I don't think any weaver is interested in learning electronic transactions or that any wholesale buyer is willing to pay online. Maybe some wholesalers are tax dodgers but they have many other businesses. Ultimately, the poor weavers will suffer."

The art of making Banarasi saris thrived during the Mughal period because the nobles and the rich loved to cover themselves in silk, gold and silver.

"In the 14th century, artisans from Iran and Iraq visited Varanasi and settled here. In the 21st century, cheaper imitations of the Banarasi sari are invading the market from Surat in Gujarat. They are technology-savvy but don't mind cheating the customers. We are honest but poor, and are strangers to technology," Ahmed alleged.

"Although expert buyers can easily tell the imitation from the real, the supply of the Gujarat-made saris has increased in the past few weeks because we are not producing anything."

Ahmed added: "If we opt for cashless transactions, our tax liability will increase and we'll have to pay the online service charges. Modi's development model seems to be a burden on the poor weavers."