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Price hike on festive items hits Deepavali sales in Chennai

October 28, 2024

Chennai, Oct 28

Despite a surge in footfall at shopping malls and discount shops for the festive season, shopkeepers report a decline in sales volume across various stores in Chennai.

R. Janakiraman, a cracker shop owner in Anna Nagar (East), Chennai, told IANS: “The factory price of popular crackers like ‘Kuruvi,’ ‘Chain crackers,’ ‘Knockout,’ and other items has skyrocketed. When we add our profit margin, prices increase substantially, which could be causing the drop in customer numbers.”

According to Janakiraman, the sales volume, which reached Rs 4 to 5 lakh during this period in 2023, has fallen to approximately Rs 3 to 4 lakh this year. He noted that daily sales have decreased by about Rs 1 lakh, with a 15 per cent price increase compared to the previous year.

He attributed the price hike to reduced production of firecrackers.

Karthiyani, a 54-year-old school teacher from Purasawalkam, Chennai, mentioned that prices of essential Deepavali items, including crackers, diyas, sweets, gold, and clothes, have risen by 15 to 20 per cent since 2023.

She noted that the price of gold has increased by at least Rs 2,000 per gram, while diyas are over 25 per cent more expensive than last year.

“Last year, I bought a bag of crackers for Rs 5,000; but this year, I could only get around three-quarters of that amount for the same price,” she said.

Additionally, she noted that the price of cashew sweets in Sowcarpet has jumped from Rs 600 per kg in 2023 to Rs 800 this year.

Many shopkeepers indicated that online sales are also impacting retail sales, despite a heavy turnout on Sunday, the last weekend day before Deepavali.

 

 

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