Cash crunch has hit the Diwali market in a negative way, said local players. Footfall is down by 50 per cent in the retail market for electrical products, travel sector and food sector. Retailers said that this was one of the worst seasons they had witnessed in the recent past.
The scenario at Gandhi Road in the old city, which is normally buzzing with activity ahead of Diwali, is quite different this year. "Normally, we would not have time to talk to you. But this year, we are sitting idle. There is almost no business. It is down by about 90 per cent," said Jagdishsingh Khalsa, vice-president of Gandhi Road Vepari Mandal. The area has about 4,500 units manufacturing and selling electrical equipment. However, work is only about 10 per cent of what it used to be in the previous Diwali.
"Demonetisation has severely hit these players. The payment cycle has disrupted the business of small-time manufacturers. Workers want their salary in cash. Many went to their native places after demonetisation and have not returned," said Khalsa adding that while there is a general slowdown since 2012, the dip in business this year is sharp.
Luxury bus operators said that business was down by about 40 per cent when compared to normal Diwali, which is just a week away and many trips are operating without 100 per cent booking. Ïn the run-up to Diwali, the business has not taken the way it used to. We hope that it will pick up just ahead of Diwali," said Haribhai Patel, chairman of Akhil Gujarat Tourist Vehicle Operators Federation. Mahesh Dudakiya, co-founder of Shakti Travels said that bookings for both domestic and international destinations was lower by about 15-20 per cent compared to the normal Diwali. He blamed lack of liquidity with the masses for the slowdown.
Sweets and namkeen retailers also said that the festive mood is lacking this Diwali as footfall as well as business have dropped. Our business is dependent on how good other businesses are. Moreover, this is a luxury so people cut down on expenditure on sweets. The business is down by about 20 per cent as of now," said Murli Agarwal, president of Ahmedabad Mithai Farsan Association.
FESTIVE LOSSES
- Footfall is down by 50 per cent in the retail market for electrical products, travel sector and food sector.
- Luxury bus operators said that business was down by about 40 per cent when compared to normal Diwali.
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