Deepavali business: Bengaluru’s once bustling markets are silent, thanks to inflation, e-shopping

Bengaluru: A steep rise in Bengaluru’s cost of living has muted Deepavali festive cheer this year.

The typically bustling streets of the city’s pete areas (traditional business hubs) now see only a trickle of customers. Traders in Chickpet and Patnoolpet report a sharp drop in festive sales, attributing this to surging prices of essentials like dry fruits, spices, fruits, and vegetables.

Many traders cite bad roads and traffic congestion as major deterrents to consumer footfall, while others point to the impact of online shopping and quick commerce on in-store sales.

The narrow lanes near BVK Iyengar Road, disrupted by ongoing white-topping work, lead to Old Tharagupet Cross, which is also in poor condition. Dry fruits, spices, and kumkum dealers, some carrying on family legacies, lament the drop in business.

Venkateshwara Rao, a vendor at Vasavi Benzoin for over 45 years, says online shopping has hit business hard. “When everything online comes to the customer’s doorstep, who would want to navigate these roads and traffic?” he asks, adding that people now prefer paying a delivery fee over wasting time in traffic. He, however, believes that online stores do not offer premium kumkum and rangoli colours.

Traders also note the impact of inflation on middle-class spending.

MP Praveen, owner of Sree Mayura Enterprises, a spice dealership for 25 years, said, “Nobody has money anymore. Everything is expensive in Bengaluru.”

Sukesh Babu, owner of Pure Soap-Nut Works, highlights a cultural shift in festival celebrations. “Festivals at home with family have become long-weekend getaways for many, cutting down (traditional) shopping, cooking and buying." 

Shift from gold to silver

The soaring price of gold has also affected traditional festive purchases, with many jewellers observing a shift from gold to silver among buyers.

Vinay Devda of the Jewellers’ Association, Bengaluru, noted a 40% rise in gold prices this Deepavali compared to last year.

Ramesh Chandra Lahoti, former president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), said that inflation has forced middle-class families to rely on EMIs, making gold increasingly unaffordable. Current FKCCI President MG Balakrishna added that from rent to groceries and transport, the cost of nearly everything has surged.

Kasturi Pesala, a resident of Kalyan Nagar, decided to stay home for Deepavali after enduring exhausting commutes in last week’s Bengaluru rains.

She noted that although quick-commerce apps charge extra through a "festive-handling fee", she still preferred the convenience. "Going out for shopping is time-consuming and tiring," she said.