The trading community in Kerala anticipate heavy loss if the state government goes ahead with its decision to suspend Onam celebrations in the backdrop of landslide tragedy in Wayanad that claimed hundreds of lives as the festival accounts for a significant share of their annual sales.

The retailers across India consider Onam as the barometer for how the festival season in the country will play out. If Onam clicks, the rest of the season will benefit from it, they believe.

But this year the Wayanad calamity has cast a shadow on the festival fervour which is set to begin from the second week of September. Already, the textile and garment makers have come out with a request to the government to withdraw its decision not to hold the Onam celebrations fearing loss of revenue to the entire trading fraternity.

T.S.Pattabhiraman, president of Kerala Textile and Garment Manufacturers Association said the sale of consumer electronics goods, garments, cars, and caterers business will be hit with the government decision to cancel celebrations. Such a move may prompt other organisations to call off festivities which would result in a revenue loss both for the trade as well as for the government by way of taxes.

It is estimated that there would be a loss of around ₹25,000 crore, besides reduction in job opportunities during the season. He urged the government to go ahead with Onam celebrations in all districts other than Wayanad.

The state sees ₹10,000 crore worth garment sales together in organised and unorganised segments of which 40 per cent happens during Onam, adds E.P.George, patron of the association.

A strong resentment is also brewing among government employees over the decision to collect five days salary for Chief Minister’s Relief Fund for Wayanad victims. Apprehension among the trade is that the salary collection may impact consumer spending due to reduced take-home pay.

Jerry Mathew, Managing Director of WhiteMart said the contribution of Wayanad and Idukki to Onam sales is very negligible due to their lower consumer capacity. Onam is the time for brands to go on a spending spree and this is expected to continue as there is 15-20 days more for the festival to kick-start.

However, the aggressive consumer buying will take place only on last one week of Onam after workers receive a bonus.

Of late, major retail marketing firms are enhancing their floor space capacity on the expectations of a thriving consumer demand which is an indicator for a colourful season this year, he added.

Targeting a significant business, brands such as Sony India and Godrej Appliances already kick-started their campaign. Kamal Nandi, Executive Vice President of Godrej Appliances who was in Kochi said they are targeting ₹225 crore in the Onam compared to Rs150 crore last year.

Aiming a 50 per cent growth, Sunil Nayyar, Managing Director of Sony India said his company is looking at ₹150 crore sales across product categories against ₹100 crore last year.

Passenger car makers are also pinning hopes with Volkswagen India introducing special celebratory Onam editions of Taigun and Virtus for the Kerala market. Companies such as Maruti Suzuki, Hyundai, Tata Motors, Honda are also introducing discounts to mop up sales.

Related Topics