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STREET

VENDORS AND
THE URBAN
ECONOMY

Sharit Bhowmik

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Street vendors are mainly those who are by the author on street vending in ten
unsuccessful in or unable to get regular cities shows that around 40% of street
jobs. This section of the urban poor tries vendors in Mumbai were former workers
to solve their problems through their in the formal sector. Street vending thus
own meagre resources. Unlike some provides employment to a large section
other sections of the urban population of the population.
they do not demand that government
create jobs for them, or engage in The poorer sections in the city are able
begging, stealing or extortion. They try to procure their basic necessities mainly
to live their life with dignity and self- through street vendors, as the goods sold
respect through hard work. are cheap. The study on street vendors
conducted by the author showed that
Importance of street vendors the lower income groups spend a
higher proportion of their income in
For the urban poor, hawking/street making purchases from street vendors.
vending is one of the means of earning Had there been no street vendors the
a livelihood, as it requires minor plight of the urban poor would be worse
financial input and the skills involved than what it is at present. In this way
are low. There is also another section of one section of the urban poor, namely,
the urban population that has taken to street vendors, helps other sections of
street vending, as studies from Mumbai the poor to survive. Hence though street
show. These people, or their spouses, vendors are viewed as a problem for
were once engaged in better paid jobs urban governance, they are in fact the
in the formal sector. Most of them were solution to some of the problems of
employed in the textile mills or in other the urban poor. By providing cheaper
large factories. Formal sector workers commodities street vendors are in
in the city have had to face large-scale effect providing a subsidy to the urban
unemployment due to the closure of large poor, something that the State should
industries. The textile workers strike of have done.
1981-2 resulted in job losses of over
one hundred thousand initially, after The census conducted by TISS-YUVA
the mills restarted. At present the work of hawkers occupying municipal lands
force is around 30,000 as compared showed that there were 102,401
to 250,000 before the strike. Many of hawkers in these areas in 1998.i
these retrenched workers or their wives, The census did not include hawkers
have become street vendors in order operating from privately owned lands,
to eke out a living. A study conducted land owned by The Mumbai Port

i "Census of Hawkers on BMC Lands" conducted by TISS and YUVA for Municipal Corporation of Greater
Mumbai, 1998 (mimeo)

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Trust, Railways and other Central and Mumbai for over a year in 2004-5
State government owned land. If we as a part of his Ph.D. research. His
include all these areas then the total findings showed that out of 1,500 tons
number could be 250,000 or more. of vegetables sold through APMC (the
The National Policy for Urban Street main wholesale outlet for the megacity)
Vendors states that around 2% of the two-thirds (1,000 tons) are sold
total population of a city is engaged through street vendors. The rest (500
in street vending. By this measure the tons) are bought by hotels, restaurants
total number of street vendors should and shopping malls. Besides this,
be around 250,000. Street vendors vegetable vendors in the western
thus constitute a large section of the suburb of Kandivili (who number over
urban work force, and perhaps the two hundred) have formed their own
most victimised. association which gets its supply of
vegetables directly from the farmers
The total employment provided through on the outskirts of the city. Removal of
street vending becomes larger if we street vendors, according to Shapiro,
consider the fact that it sustains certain would have a devastating effect on
industries by marketing their products. the vegetable growers in the State and
A lot of the goods sold by street would also create distribution problems
vendors, such as clothes and hosiery, in the city.
leather and moulded plastic goods,
household goods and some items Profile
of food, are manufactured in small
scale or home-based industries. These In the following sections we shall
industries engage a large number of provide a profile of the street vendors
workers but they can hardly market in Mumbai. The data presented, unless
their products on their own. In this mentioned otherwise, is presented
way street vendors provide a valuable from a study conducted by the author
service by helping sustain employment in 2000. This study has been updated
in these industries. Our study of micro- recently. The other sources of data are
industries in Dharavi showed that a lot the study conducted by TISS-YUVA in
of the goods manufactured there are 1998 and a study conducted by SNDT
sold by hawkers in the city.ii University in collaboration with ILO in
2000. TISS-YUVA had conducted a
Jonathan Shapiro Anjaria an survey of street vendors on BMC lands
anthropologist from Brandeis University, while the other two studies were based
Boston had studied street vending in on samples.

ii Sharit Bhowmik, Varsha Ayyar, Vaijyanta Anand and Indira Gartenberg, Workforce
Sharit Bhowmik, Varsha Ayyar, Vaijyanta Anand and Indira Gartenberg, Workforce Development and
Mainstreaming Informal Sector in Mumbai Metropolitan Region, Urban Institute, Washington and USAID, 2007
(mimeo)

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Location invariably sold by Koli women who are
good at cleaning and cutting fish. The
Street vendors are found at almost all buyer also feels that the fish is fresh or
places in the city and its suburbs. They is not decayed. Similarly in the case of
sell a variety of goods that are used meat or chicken, the buyer feels that
for different purposes. These range the product is cleaned and cut properly
from perishables such as cooked food and the product is genuine. However
and raw food such as vegetables, one may find fish sellers outside some
fruits, meat, chicken and fish and non- municipal markets. They are there
perishable goods such as clothes, because the demand may be high and
accessories such as belts, articles for there are not sufficient stalls inside the
personal use, utensils etc. market to cater to all buyers and sellers.
Vegetable vendors outside municipal
Vendors selling fresh vegetables and markets too gather there because there
spices such as green chillies, coriander, is a much larger demand for vegetables
ginger, garlic etc. usually concentrate in and the stalls demarcated for this inside
areas adjacent to the municipal markets the market are woefully limited.
as people go shopping for their daily or
weekly requirements to these markets. Vendors selling non-perishable items,
They also concentrate in other locations especially garments, are found in large
such as suburban railway stations, numbers in certain locations. These are
major bus stops etc. so that people on at Churchgate, Colaba Causeway and
their way home after work can shop Dadar in the city and in Bandra, Santa
for these essentials before they return. Cruz (West), Goregaon, Chembur and
If such places were cleared of street other railway stations in the suburbs.
vendors, the consumers would face Vendors selling accessories too gather
inconvenience as they would have to in these places as their markets are
make a detour to the local market to similar.
buy their requirements before going
home after an exhausting day at work. One fact has to be borne in mind in
these markets. There are no single
Vendors selling other perishables such item vendor markets in the city. In
as fish, meat and chicken are fewer other words, one will not find a market
in number. People who consume such that has only garment sellers. There
foods prefer to buy them at proper will be food vendors and also other
shops. There are other advantages vendors selling allied items. In this
of this. The stalls / shops are at sense a hawkers’ market gives one the
recognised municipal markets and impression of being a common person’s
there is less possibility of the foods open air shopping mall where a variety
being contaminated. Moreover, those of things can be purchased from the
manning these stalls are professionals same area.
in that particular product. Fish is

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Food vendors form a sizable section time includes cooking, for the garment
of the street vendor population in the vendor it implies time required to buy
city. People here have a tradition of the products and later display them.
eating out or consuming snacks during It was found that about 95% of the
office breaks or while returning home vendors spent 1-2 hours of time daily
from work. It is also estimated that at towards the said preparation. The
least one third of the city’s population remaining 5% devote a lot more; they
eats something during the day from spend 3-5 hours daily in preparation
a food vendor. Food vendors provide before starting to sell.
low priced meals too. These can range
from rice / chapattis and vegetables Hawkers operating in the more affluent
to Chinese cuisine. Food vendors are region of South Mumbai stay in the
found all over the city but they too, like distant suburbs. They leave their homes
other vendors, cluster around railway at 7 a.m. and return at times at 11 p.m.
stations and other markets. One can Those selling non-perishable goods
find food and fruit vendors outside store their unsold stock in local shops
public hospitals. for which they pay rent. Those selling
food have to carry back the unsold
The working conditions of the vendors stock in the luggage compartments of
are tough. Most of them (90%) leave the suburban trains.
their homes by 6 a.m. or 7 a.m. and
return late at night. A recent survey Hawkers in the working class areas of
on street vendorsiii showed that in Central Mumbai reside in one-room
Mumbai around two-thirds of hawkers tenements (chawls) or in hutments in
(65%) reside 10 km. or more from their the vicinity. Even there they start work
places of work. They use suburban from early morning when they have to
trains for commuting. Thus we find that go to the wholesale vegetable and fruit
the working day of a street vendor, market at Dadar to buy their goods.
irrespective of her / his income is more They start selling their wares from
than 10 hours. It was found that vendors 8 a.m. and return home in the late
needed preparation time before setting afternoon for lunch. They return to work
up their stalls. Since the stalls are not at 4 or 5 p.m. and continue till 10 p.m.
permanent built-up structures and are The daily income of the vendors
temporary makeshift arrangements on according to the survey mentioned
the pavements, the vendors keep aside earlier (see endnote 2) varies. Only 1%
some time to set up shop every day. This of vendors earn the lowest daily income
preparation time may vary depending group of less than Rs.20. These are
on the types of products. For instance, vendors who sell goods for a limited
for the food vendors the preparation period of time in order to supplement

iii Sharit Bhowmik and Debdulal Saha, Study of Street Vendors in Ten Cities in India, National Association of
Street Vendors of India, Delhi June 2012 (see website, nasvinet.org, for full report)

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their income. The number of vendors in Rs. 3,000 per month. In most cases
the next income trajectory of Rs.21-50 (more than 90%) their household
is 2%. Those earning between Rs.51- income ranges between Rs. 2,000 and
70 is another 2%. These vendors are Rs. 2,500 per month. Undoubtedly
invariably women. Most of the vendors, these women belong to families that are
around 64%, earn between Rs.141- below the urban poverty line.
350 per day. At the time of the study
Rs. 146 was the minimum wage for Harassment and Bribes
unskilled workers in the State (it is
around Rs. 250 in 2014). The minimum Street vendors in Mumbai, especially
wage is firstly the minimum requirement those in the central business district and
of a family for one day. Secondly it is the affluent residential areas in the city
calculated on the basis of eight hours and the suburbs, work under constant
of work. A street vendor may earn a threat of eviction. In fact, from June
minimum wage/income but the time to November 2000, the municipality
s/he invests is disproportionate to the carried out rigorous raids in the central
income earned. business district and in the affluent
residential areas such as Colaba,
Most women vendors earn less than Cuffe Parade in south Mumbai, Bandra
males for two main reasons. Firstly, (West), Santa Cruz (West) and Ville
they belong to poorer strata and hence Parle (West) in the suburbs. These
their investment is less than their male raids were carried out mainly under
counterparts. Secondly, they also the supervision of a re-instated Deputy
have to take care of children and do Municipal Commissioner (Khairnar)
the household work. This allows them who had become known for his
less time for attending to business. The demolition drives in the city.
women squatting on the pavements
in the working class area of Central The fall-outs of the mass evictions were:
Mumbai have started hawking after 1. A large number of street vendors
the closure of the textile mills in that were reduced to penury. For example,
area. Their husbands had worked as the street vendors in the Fort area,
permanent workers in the textile mills who were envied for being the most
and are now unemployed for the past prosperous in the city, became paupers
several years. These women provide for overnight. Many of them were back
most of the expenses for the household on the streets as they had no other
through their meagre incomes, as they means of income but were heavily
are the main earners. In comparison to in debt.
male vendors their incomes are 20%
lower. We have not come across a 2. The amount paid as bribes to the
single case where a female hawker’s police and municipal authorities by
total household income is more than hawkers in these areas went up steeply,

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sometimes as much as ten times the faced eviction by the municipality
earlier rates. The street vendors were in where their goods are confiscated. In
panic and they were willing to pay any some cases we found that the maximum
amount to enable them to carry out their number of evictions a street vendor
business or to be forewarned about faced was three in that year. Of those
an impending raid. We had made a whose goods were confiscated only
brief survey of these areas after these 32% could recover all their goods after
raids and we found that the vendors paying the fine. The others could recover
pay Rs. 100 to Rs. 125 at a time to the less than half the goods confiscated.
authorities for these ‘services’ whereas Besides raids where their goods are
they paid daily Rs 10 – 15 per earlier. confiscated, street vendors also have to
regularly bribe the authorities in order
3. The mental and physical health of to vend. This eats into their income. In
the street vendors was been affected. A this survey, it was found that 33% of
study by SNDT Women’s University and the total vendors did not pay bribes.
ILOiv study shows that 85% of the street These were either older people or
vendors covered suffered from ailments impoverished women vendors. Almost
associated with stress. These include 66% said that they were forced to pay
hyperacidity, migraine, hypertension, bribes. The amount of bribe paid by
digestive problems, lack of sleep etc. the vendors ranged from a minimum of
Rs. 5 to a maximum of Rs. 1200 per
An almost identical situation day. The mean amount was Rs. 219.
occurred after the massive raids in
2003 conducted by another Deputy Even in areas where they are unionised,
Municipal Commissioner, Chandrakant vendors have to pay bribes. In general
Rokade. As in the case of Khairnar, this we found that male hawkers usually
person too had the full encouragement had to pay bribes and the amount
of NGOs representing the elites in the was more as compared to the bribes
city. The English news papers sang paid by the female hawkers. One
praises of the courage and honesty of possibility for this is that the income of
these two stalwarts.v We have found female hawkers is lower than that of
that the only effect these eviction moves the males. Food vendors tend to pay
have is that they increase the bribes to more bribes to the municipality as they
the authorities. are frequently threatened that their
goods will be destroyed, as these are
The survey quoted above (endnote 2) unhygienic.
showed that 68% of the vendors have

iv Study of Hawkers in Mumbai" conducted by SNDT Women's University and ILO, 2001. (mimeo)
v Ironically Mr Rokade is under suspension as he has been charged with rent seeking. He was caught while allegedly
accepting a bribe from a contractor whose vehicles were used for conducting the raids on street vendors.

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Laws and Regulations or in any other way whatsoever."
Hence even if the municipal authorities
The laws for street vending are regulated grant space for vending in public
by the Bombay Municipal Corporation places, the police have a right to evict
Act 1950 which was in force before the them under the above section. Perhaps
State of Maharashtra was formed on 1 the studies on street vendors show that
May 1960. The municipal laws do not more rent is collected by the police than
provide for the erection of any structure the municipality!
or stall on the streets which will obstruct
the passage of the public, or impede A word regarding the system of issuing
the working of a drain or open channel. licenses is necessary. In Mumbai, where
Such a structure is liable to be removed there are around 250,000 hawkers,
by the Municipal Commissioner and the the municipal corporation has granted
person responsible for the creation of only 14,000 licenses. Moreover, the
the structure is to incur the expenses of municipal corporation has stopped
its removal. It is imperative for a person granting new licenses for the past two
to procure a license from the Municipal decades, hence most of these license
Commissioner to be able to hawk his / holders do not ply the trade at the
her wares in any public place. Failure present as they are too old or they have
of compliance will lead to the removal died. The TISS-YUVA survey found that
of any product being hawked on the only 5,653 hawkers, out of a total of
streets, without prior notice. 102,401 hawkers, had licenses. Hence
this system has more or less failed.
The municipal laws regulate the use of
pavements while the police regulate As far as urban planning is concerned
the use of roads. Hawkers are evicted all such documents show that street
mainly under sections 102 and 107 vendors occupy no place in them. The
of the act. These sections stipulate that Draft Plan of the MMRDA for 1995-
anyone preventing smooth flow of traffic 2015 has demarcated spaces for
can be arrested and removed. everything, except markets for street
vendors. One way of ensuring some
The police however have sweeping support to street vendors is of forming
powers regarding what is termed as open air markets in open spaces in
encroachment. This stems from Section different localities.
34 of the Police Act of 1954 that has
been adapted by all States with regard Hawking Zones and Court Cases
to the local police. "No person shall
cause obstruction in any street or public The Municipal Corporation had a
place by…exposing anything for sale system of demarcating hawking and
or setting out anything for sale in or non-hawking zones. However, this
upon any stall, booth, cask, and basket system is now being challenged. There

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is a pending case in the Supreme other use." (Sodhan Singh versus
that has some serious repercussions. NDMC, 1989).
However before we go into details let
us look at the background. The above extract from the Supreme
Court judgement is significant because
There have been a number of PILs in it emphasises on several important
Mumbai in the past (1980s onwards) aspects of street vending and use of
on issues affecting the poor. However public space. The judgement notes
the most important case that affected the positive role of street vendors in
the status of street vendors in the city providing essential commodities to
was one in 1989 in the Supreme Court. common people at affordable prices
More than a few decades ago, the New and at convenient places. Moreover,
Delhi Municipal Corporation evicted a the judgement notes that street vending,
common street vendor, Sodhan Singh, if regulated, cannot be denied merely
who sold garments at Janpath in New on the ground that pavements are meant
Delhi. He appealed to the Supreme exclusively for pedestrians. The most
Court through a Public Interest Litigation important aspect is that street vendors
claiming that the act violated his are exercising their constitutional right
fundamental rights, more specifically to carry out trade or business hence
his right to carry on business or trade it should be regulated properly and
(article 19(1)g). In a very significant not abolished.
judgement, the Court ruled that:
The judgement directed the
"If properly regulated according to State Governments to direct their
the exigency of the circumstances, the municipalities to evolve hawking zones
small traders on the side walks can where street vendors could practice
considerably add to the comfort and their trade. In Mumbai, this happened
convenience of the general public, by in 1998. The Municipal Corporation of
making available ordinary articles of Greater Mumbai (MCGM), after a great
everyday use for a comparatively lesser deal of consultation and discussion had
price. An ordinary person, not very demarcated the hawking zones for
affluent, while hurrying towards his the city and suburbs. The TISS-YUVA
home after a day's work can pick up survey too was a part of this exercise.
these articles without going out of his The proposed hawking zones were
way to find a regular market. The right notified to all through newspaper
to carry on trade or business mentioned advertisements. MCGM also
in Article 19(1)g of the Constitution, on announced that any individual or party
street pavements, if properly regulated that had any objection should notify
cannot be denied on the ground this to them within a month. There were
that the streets are meant exclusively hardly any objections or clarifications.
for passing or re-passing and no It appeared that the plan would be

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implemented. However, no sooner (trade unions, cooperatives and mutual
than MCGM decided to implement the aid societies of street vendors.) These
plan, there were spates of protests from bodies must be registered and must
various residents' associations (led by have financial accountability.
Citispace). They even got a stay from
the High Court. In 2002 Maharashtra The Chief Executive of the municipal
Ekta Hawkers’ Union appealed against body will be chairperson of the TVC.
the High Court stay in the Supreme. This body will provide policy guidelines
The final order, passed on 9 September on all aspects of street vending. Its
2013, has provided tremendous relief policies have to be inclusive for all
to street vendors. The judgement street vendors. It will carry out a photo-
follows the same recommendations of identity census of all street vendors and
the National Policy for Urban Street will provide them identity cards. The
Vendors (2009) and it is applicable TVC will find spaces for street vending
not just to the City of Mumbai but to all and will provide civic amenities to street
urban areas in the country. vendors. The TVC can charge fees
from vendors which will be used for
Supreme Court judgement of conducting its activities and providing
9 September 2013 and the facilities to street vendors.
national law
In 2012 the government had introduced
The main features of the judgement a bill in the Lok Sabha titled “Street
are the following. All municipal bodies Vendors (Protection of Livelihood and
have to conduct a census of street Regulation of Street Vending) Bill”. This
vendors in the areas. This should be bill was passed by the house a year
completed within four months of the later and was sent for approval of the
passing of the judgement. Till this Rajya Sabha. The bill was passed by
census is conducted no street vendor the Rajya Sabha on 20 February 2014
will be evicted. All existing street and it received the President’s assent
vendors will be regularised and identity on 5 March 2014 which makes it an
cards will be provided to them. Every Act. However as the Code of Conduct
urban municipality will constitute a was imposed on the same day, the Act
Town Vending Committee (TVC) that cannot be implemented till the election
will have all stake holders (municipal process is over and a new government
representatives, police and traffic is established.
police, health officers, representatives
of residents’ associations and street The Act is passed on the lines of the
vendors). Representatives of street national policy. The Supreme Court
vendors will constitute 40% of the TVC’s judgement too takes into account the
membership. These representatives will policy as well as the bill, which had been
be from membership based bodies passed by Lok Sabha by then. Hence

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the Act is very similar to the judgement those not purchasing from them) they do
which can in effect be viewed as interim serve useful purposes. Natural markets
guidelines till the Act comes into effect. are those places where the vendors
gather because they serve the interests
MCGM’s efforts to regulate street of the public. According to the National
vending Policy on Urban Street Vendors, 2009,
the term "Natural Market" means a
On 22 February 2013, the Municipal market where sellers and buyers have
Corporation of Greater Mumbai traditionally congregated for more than
appointed a two member expert a specified period for the sale and
committee to examine the problems purchase of a given set of products
faced by street vendors and suggest or services as assessed by the local
ways and means of how street vendors authority. The law for street vendors
can be accommodated in the streets. too defines natural markets in the same
These have to be done in consonance manner. Hence railway stations and bus
with the suggestion of the national terminals will have street vendors selling
policy that 2% of the urban population fruits, vegetables, cooked food etc as
is engaged in street vending. The two the people alighting from these places
members were Dr Rohit Shinkre of find it convenient to buy these on their
Rachna Sansad College of Architecture way home. Similarly places of worship
and the author. The project covers will have flower and fruit sellers among
all 24 wards but a pilot study was others as the people visiting these
carried out in 3 wards namely, M West places find it convenient to buy these
(Chembur, Marol, Mahulgaon etc), G as offerings. Public hospitals too will
North (Dadar, Mahim, Prabhadevi etc) have a number of street vendors selling
and K East (Andheri and Ville Parle east food and snacks, fruits etc as these are
etc.). A total count of street vendors needed by the inmates or by those who
operating from pavements and those come to visit them. Parks and beaches
using handcarts were covered. will have vendors selling snacks, toys,
balloons etc.
The main findings were discussed
in a meeting of all ward officers and There is a need to regulate vending in
Senior Licensing Inspectors on 19 April these places so that all stake holders
2014. Street vendors concentrate in can benefit. One way is of designing
the ‘natural markets’, namely outside stalls and equipment so that the vendors
railway stations, places of worship do not occupy a major part of the
(Mahim Church, Mahim Darga, Siddhi pavement. Another way is of allowing
Vinayak Temple etc). While these only those types of street vendors whose
places are crowded and at times services are most needed. For example,
the presence of street vendors may we found that there were a number of
inconvenience the public (especially hawkers around the railway stations.

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We suggested that the most needed vehicles. This was reiterated by most
there are those selling perishable goods of the ward officers/assistant municipal
like vegetables, fruits and snacks. Most commissioners. In many of these
people buy from these hawkers. There stations shop keepers and office goers
are others who sell non-perishable park their vehicles throughout the day.
goods such as garments, crockery, If adequate parking space is created
etc. These hawkers could be shifted these areas could be decongested and
a little bit away, into lanes that have MCGM could earn revenue through
no hawkers and are less crowded. parking charges.
People wanting to buy their goods
could go to these areas which could To conclude, the issues concerning
gradually become natural markets for street vending can be easily tackled
these products. Some of the shops in without resorting to forcible eviction of
these areas use hawkers as extensions these service providers. What is needed
for selling their wares. This should be is the will to do so and correction
prevented. Hence moving them out of the wrong perceptions that the
would help in decongesting the area. urban middle class and the elite have
about hawkers.
Though it is always alleged that street
vendors cause obstructions to traffic
and pedestrians we found that the
main obstruction comes from parked
Photo Credit : Gufran Shaikh

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