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Bengal's Economy Has Always Relied on the Durga Puja – Will This Prove Much Too Dear This Time?

business
Protests and the lack of opportunities has led to thinning excitement for the busiest time for retail business in the state.
Shopkeepers at Kolkata. Photo: Joydeep Sarkar
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Kolkata: The usually bustling footpaths of Gariahat, known for their crowds of last-minute shoppers, are unusually quiet this year except for the weekends. Just days before the start of Durga Puja festivities, Kolkata’s signature festive energy feels subdued. The typical hustle and bustle in popular shopping hubs like Gariahat in south Kolkata and Hatibagan in the north, is noticeably lacking. Footpaths that are usually packed with eager shoppers seem sparse, and even the vendors’ calls for discounts have lost their usual vigour.

Though thousands have already taken to the streets for pandal hopping, ongoing protests and economic uncertainties have cast a shadow over the shopping season, leaving many businesses concerned about their sales.

“Who would believe Durga Puja is not even a week away? People aren’t coming out in numbers for their last-minute shopping this time,” said Panchu Saha, a roadside shopkeeper in Gariahat. 

In anticipation of large crowds during Durga Puja, the police had set up barricades and ropes at the Gariahat crossing. However, with the turnout lower than expected, these preparations went unused for large parts of the day. A police officer on duty noted, “Managing the parking of cars here before the Durga Puja used to be a nightmare. This year, it’s the same story, except this time we are managing protest rallies.”

Also read: A Durga Puja Like No Other: R.G. Kar Protests Cast Shadow over Festivities in Kolkata

Protests

Protests against the R.G. Kar rape and murder, and the state government’s reaction to it, continue unabated.

New Market, in central Kolkata, has presented a slightly different scene. By the afternoon of the last weekend before Durga Puja, the crowds of shoppers had begun to swell. 

Asmita Sengupta, carrying shopping bags as she hurried through New Market Square, shared, “Normally, the festive mood kicks off a month before Puja, with shopping. But given the current circumstances, the festivities don’t feel right. Children don’t understand much about what’s going on, so I bought something for them.”

Preparations begin for another protest against the R.G. Kar incident in central Kolkata. Photo: Joydeep Sarkar

Mausum Khan, a vendor selling goods on the footpath at New Market, gestured to a protest march on her phone and said, “Many people aren’t thinking about the Puja now. It’s only the fire of protest that’s burning in their minds.”

Durga Puja is the busiest season for retail business in West Bengal. Many blue-collar workers and state government employees receive bonuses during this time, stimulating a surge in consumer spending. For small retailers, especially in mass markets like Gariahat and Hatibagan, Puja sales are crucial for boosting their annual income.

Gupta Enterprises, a wholesale garment supplier to the entire state from Kolkata’s Burrabazar, painted a gloomy picture. Nilom Gupta, one of the directors, said, “It’s a long-standing tradition in this state to buy new clothes and household items for the next twelve months with this extra money. This time too, we have sent goods as per orders from various districts. We have not received any new orders in the the past two weeks, I’m a little surprised.”

What the numbers say

“This year, the market has been sluggish. A month was lost to protests. So, this year, we’ve had only 11 months of business. Compared to last year, our sales have decreased by 35% one week before Puja. Our average sales, which are typically higher in Kolkata, are much lower this time,” remarked Ramesh Pandey, an official running a shopping mall in Kolkata. 

According to the Kolkata Street Hawkers’ Union, the number of hawkers in Kolkata has increased steadily from 191,000 in 2011, with an annual growth rate of 0.8-0.9%. The pandemic further fuelled this growth as some unemployed individuals turned to street vending. With approximately 210,000 hawkers in Kolkata, the decline in sales during this year’s Puja season has come as a shock.

“Our estimates indicate a 45-50% drop in pre-Puja sales compared to previous years. We’ve spoken to regular customers and identified three main factors contributing to this decline. Despite rising prices, low-income buyers have experienced a decrease in income. This, coupled with job losses, has negatively impacted the market. Additionally, the eviction of hawkers has further worsened the situation,” said Asitanga Ganguly, a leader of the Left-affiliated Hawkers’ Union.

Sidewalk hawkers’ stores at Kolkata. Photo: Joydeep Sarkar

A dismal picture

Beyond the cultural spectacle, Durga Puja provides employment for nearly 3 lakh individuals in West Bengal. The surge in consumer spending during the festival has a multiplier effect, positively impacting the state’s overall economy. 

A 2019 study by the British Council estimated the economic value of creative industries associated with Durga Puja in West Bengal at Rs 32,377 crores (2.6% of the state’s GDP). With government support and incentives, this figure has reportedly risen to Rs 50,000 crores in recent years. To put this in perspective, renowned global festivals like Rio Carnival, Hanami, Oktoberfest, San Fermín, and Mardi Gras contribute between 1.35%-2.25% of their respective economies. However, many economists caution about the state’s over-reliance on a single festival. 

“The state’s reliance on subsidies and incentives to stimulate demand had proven ineffective. By neglecting investment, the strategy worsened supply-side constraints. Consequently, Bengal, historically a low-inflation state, experienced consistently higher inflation rates than the national average,” said economist Indranil Dasgupta. 

Adding to the challenges, mid-September floods devastated six districts, leaving many unable to participate in the usual Puja shopping frenzy.

“This Puja market has been declining since 2016, first with demonetisation, then GST, COVID, and now the protests,” said Sekh Azizur Rahman, a long-time roadside vendor in South Kolkata’s Gariahat. “Last year, I made Rs 1,700-2,600 daily. Today, I’ve sold goods worth only Rs 700. Can you imagine how bad the market is?”

Translated from the Bengali original by Aparna Bhattacharya.

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