Inflation taking toll on festive fervour: The market, which is struggling to get back to its traditional glory post covid has been hit hard by rising inflation and increase in GST rates. With the festive season around, the inflation has taken a toll on the festive fervour. Latest to join the league is the festival of Ganesh Chaturthi.
According to some market associations, the joy and enthusiasm of the festival of Ganesh Chaturthi has been deeply affected this time around. Especially the business of sale and purchase of Ganesh Idols has been affected with an increase in the GST rates to 18% on many of the materials used in the making of Ganesh Idols.
Inflation taking toll on festive fervour, affects Idols business
Smaller idols are now being preferred by the buyers because of higher rates. Even at pandals and other public events, comparatively smaller idols are being demanded. Devotees have now been switching to earthen idols.
An idol maker in the area of Badarpur, Delhi, Mukesh said that the inflation has affected his business badly. They are bound to sell their idols at higher prices as prices of the materials used in making idols have gone up.
“GST on Plaster of Paris (POP) has gone up to 18%, resulting in an increase in the price. The packet of POP, which used to cost at around Rs.100 has gone up by Rs.40 approx, costing them at around Rs. 140 per packet. The prices of colours used for painting the idols, has increased by 50% whereas the cost of decorative items has doubled this year, with a 100% increase in the price.” Mukesh said.
Inflation taking toll on festive fervour
An official from the GST council said that GST rates were revised in the 47th GST Council Meeting and new rates were implied from the 18th of July this year. The GST on certain items were kept unchanged including POP having 18% slab rate. However, the increase in the prices of POP and other materials is because of other random reasons, including fuel price hikes. However, GST on inks for painting, lights-fixtures and LED lamps, fabrics, decorative items among others has been increased from 12% to 18%.
Hemant Sharma, who was buying an idol at a shop said, “The price of Ganesh Idols have increased to almost double. The idols, which used to cost around Rs. 500 has now increased to Rs. 800 to 1000. Small idols, which used to come at Rs 100 are now available at 180 and more.”
The increase in fuel prices has also affected the business since it has rapidly increased the fare of transportation. Moreover, with the increase in price of petrol and diesel, the production cost has also increased at the factories for some of the materials used in making idols. Thus, Inflation taking toll on festive fervour, affects Idols business.