High prices dampen Diwali sales
A day ahead of Diwali, considered to be the biggest money-spinner for Indian traders, the cash counters are not ticking in line with expectations.
By Indra Bhadra, TNN |
MUMBAI: A day ahead of Diwali, considered to be the biggest money-spinner for Indian traders, the cash counters are not ticking in line with expectations. And the reasons are varied. Gold which is considered as an auspicious item to buy during Diwali, did not quite attract many due to its high price.
The yellow metal after touching a 17-month high, slipped to Rs 10,605 per 10 gm. “The price is still high, so we have cut on quantity,” said a housewife in Vashi. Overall gold demand has declined by 25% compared to last Diwali. Consumers are looking for 8-10 gram gold coins, said a bullion dealer.
Similarly, the demand for sweets is yet to peak. After recent reports on adulterated milk, sweetlovers preferred to be cautious before placing orders. Sweetshops in Mumbai refuted the charges. Ramesh Gupta, a leading maker of sweets in Navi Mumbai refuted the charges, saying, “We make mava out of milk with machine and take utmost care at the time of preparation.”
While, sweets like kaju barfi, kesar kathli, kaju roll, mixed sweets and milk cake figure among the popular items in terms of Diwali sales, their prices have gone up by 20-25% since last Diwali due to a steep rise in the prices of milk products.
Demand has not yet picked up but traders expect it to gain momentum at the eleventh hour.
Last year, dry fruit business was down nearly 40%. And this time too, it could be a same scenario. “Demand for almond, cashew, apricot and kishmish has picked up lately” said Bombay Dry Fruit Merchants’ Association president, Suniel Chhabria.
However, the 10 pm deadline may act as a dampener for people from going in for high decibel fireworks. Meanwhile, ‘Made in China’ fire crackers are doing hefty business.
Navi Mumbai Phataka Vyapari Sangh vice-president, Mukund Viswasrao, on the hand, remains optimistic. He said that despite the Chinese presence, home-made brands like Anar, Sparkle, Chakri, Lavangi Phataka, Golden Arrow and Coronation Candle are in good demand. He expects a 40% rise in business for the last two days of Diwali. Indications are that the festive mood is unlikely to be dampened.
The yellow metal after touching a 17-month high, slipped to Rs 10,605 per 10 gm. “The price is still high, so we have cut on quantity,” said a housewife in Vashi. Overall gold demand has declined by 25% compared to last Diwali. Consumers are looking for 8-10 gram gold coins, said a bullion dealer.
Similarly, the demand for sweets is yet to peak. After recent reports on adulterated milk, sweetlovers preferred to be cautious before placing orders. Sweetshops in Mumbai refuted the charges. Ramesh Gupta, a leading maker of sweets in Navi Mumbai refuted the charges, saying, “We make mava out of milk with machine and take utmost care at the time of preparation.”
While, sweets like kaju barfi, kesar kathli, kaju roll, mixed sweets and milk cake figure among the popular items in terms of Diwali sales, their prices have gone up by 20-25% since last Diwali due to a steep rise in the prices of milk products.
Demand has not yet picked up but traders expect it to gain momentum at the eleventh hour.
Last year, dry fruit business was down nearly 40%. And this time too, it could be a same scenario. “Demand for almond, cashew, apricot and kishmish has picked up lately” said Bombay Dry Fruit Merchants’ Association president, Suniel Chhabria.
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No Diwali is complete without crackers. Here too there is a mixed response. Sales of innovative crackers with crackling names like Kargil Bullet and Flying Rani are in good demand, said one fireworks dealer at Abdul Rahim Street. However, the 10 pm deadline may act as a dampener for people from going in for high decibel fireworks. Meanwhile, ‘Made in China’ fire crackers are doing hefty business.
Navi Mumbai Phataka Vyapari Sangh vice-president, Mukund Viswasrao, on the hand, remains optimistic. He said that despite the Chinese presence, home-made brands like Anar, Sparkle, Chakri, Lavangi Phataka, Golden Arrow and Coronation Candle are in good demand. He expects a 40% rise in business for the last two days of Diwali. Indications are that the festive mood is unlikely to be dampened.
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