Pune Diwali sales fall up to 30% as inflation and West Asia uncertainty hit shoppers

This year's Diwali is not as bright as last year's. Inflation has hurt people's buying power. The festive spirit remains, but demand in Pune's markets is weak. According to traders, sales have fallen by up to 30 per cent. Rising prices, uncertainty over the war in West Asia and tight household budgets are making customers rein in spending.

A recent survey estimates a 6 per cent fall in festive spending. It could drop from Rs 2.2 lakh crore in 2025 to Rs 1.97 lakh crore this year. The average household is expected to spend only about Rs 20,000. About 85 per cent of households will dip into their savings to shop.

With one day left for Lakshmi Puja, markets are crowded with last-minute shoppers. Even so, traders say customers are comparing prices across shops, buying smaller quantities and putting off big purchases.

The biggest reason is the rise in prices of everyday and festival essentials. Prices of household appliances are reported to have risen 4 to 7 per cent and those of sweets 16 per cent. Dry fruits, important in Diwali gifts, have become costlier still. Almonds are up 34 per cent and pistachios have nearly doubled. According to the survey, more than 30 per cent of households will put off non-essential purchases entirely.

Kantilal, who runs a sweet shop, said sales are 25 to 30 per cent lower than last year, mainly because of the rise in dry fruit prices. He said: "Prices have gone up 30 to 40 per cent. Almonds were Rs 800 a kilo last year and are now selling at Rs 1,200. Pistachios were about Rs 1,000 a kilo in 2025 and have risen to Rs 2,200 this year, an increase of more than 100 per cent. Customers are going from shop to shop looking for the best deal."

Cloth merchant Hasan Rajputwala said high inflation and rising crude oil prices have sharply reduced demand. The price of grey cloth, which is dyed in different colours, has risen about 20 per cent. He said: "Earlier we bought it at Rs 70 a metre, now it is Rs 100. This has affected business. Otherwise the shop would be full of customers." He also said buying habits are changing. People used to buy cloth at least a month before Diwali and have it stitched by a tailor, but this year there is a greater shift towards readymade clothing shops.

Anjali Kakade, a salesperson at a gold jewellery shop on Laxmi Road, said gold sales have dropped sharply, by 20 to 30 per cent, even though gold prices have also risen slightly.

Anoop Tendwani, manager of a two-wheeler showroom near Pune railway station, said sales are lower than last year. Last year Dussehra and Diwali fell in the same month, which supported sales. This year there is a gap between the two festivals. Petrol and two-wheeler prices have also risen by about 6 to 7 per cent.

Prasad Shrigod, manager of an appliances showroom near the station, said sales in value terms are on a par with last year, but the number of items sold has fallen. He attributed this to uncertainty and anxiety caused by the war in West Asia. According to him, higher AC prices kept revenue at the same level. Prices of fridges, ACs and washing machines are roughly the same as last year. In LED TVs, Sony has raised prices and LG has cut them slightly. The starting price of the iPhone has risen from about Rs 1 lakh to about Rs 1.63 lakh.

According to the survey, clothing and fashion are the most favoured, with 71 per cent of people interested. They are followed by travel, on which 46 per cent of households want to spend, and household appliances, at 44 per cent. Diwali spending on travel has risen 60 per cent, and the average cost of a festive trip has reached about Rs 55,000, up from Rs 35,000 in 2024.