Kite manufacturers crashing down due to cash crunch

Ahmedabad, Dec 24 (KNN) With less than a month left for Uttarayan Festival, kite manufacturers are unsure how to keep their businesses running. The impact of demonetization has grounded kite makers, as their small scale industry is largely driven by cash transactions.

The International Kite Festival (Uttarayan) is regarded as one of the biggest festivals celebrated. Months before the festival, homes in Gujarat begin to manufacture kites for the festival. But this year the manufacturing industries are expecting the festival to be of the no-less than a business of loss.

While several corporate houses used to approach kite manufacturers to get kites with their brand logos every year, not more than 10% corporate orders are expected.

The festival is expected to be held from January, 7, 2016 - January 15, 2016. The International Kite Festival, or Uttarayan, marks the beginning of summer and end of winter, according to Hindu astronomy. India’s history shows that the event began as a royal sport, for kings to display skill and power, but over time reached the common population.

The first kite festival was celebrated in 1989, and visitors will see that throughout the major cities of Gujarat the kite flying can start as early as 5AM. About 8 to 10 million people participate in the event, and the best places to go to are the Sardar Patel Stadium or the Ahmedabad Police Stadium.

While considering the statements of kite manufacturers we came to know that the production fell down to nearly 10 percent. “Against an average of 5-10 lakh kites prepared for corporate clients every season, this time we may end up selling hardly 50,000 kites to the sector. Our business has gone for a toss as most artisans who prepare kites seek cash payments. We don't have cash," said a kite manufacturer.

Generally, corporate orders for kites start pouring in right after Diwali. This year, however, most shops in the traditional kite markets of the city bear a deserted look.

According to the manufacturers normally they are getting equiries a month ahead of Uttarayan, but today customer don’t have enough money to spend after kites. They even reduced the prices up to 30 percent, as there is no business at all.

Around 1,200 families in the city who were involved in regular kite manufacture, have now turned to alternate professions amid cash crunch. At the same time, kite manufacturers and traders are being forced to do their business on credit, as there's no cash.

It became difficult to run their business for dealers, "It is really difficult to keep the business running amid such cash crunch. Since sales are very low, I don't know how I would repay the dues once the season is over," said a kite dealer in Jamalpur, according to the reports. (KNN/RAS)