Uttarayan celebrations are set to be more expensive this year due to the impact of the Goods and Services Tax (GST) on raw materials and a shortage of labour. Together, these factors have pushed kite prices up by more than 15 per cent compared to last year.
Harish Brahmbhatt, who runs a seasonal kite shop in the Ankur area, said there has been a clear increase in prices this season. “Kite prices have gone up by around 15 per cent mainly because of labour shortage and the GST impact on kite-making materials,” he said.
In the retail market, kites are being sold at prices ranging from Rs 100 to Rs 200 per kodi (a set of 20 kites), depending on their size and type. Traders remain hopeful that sales will pick up in the last few days before the festival, as many people prefer to buy kites and manja at the last minute.
Traders estimate that nearly 90 per cent of kite production takes place in cities such as Ahmedabad, Nadiad, Surat, Vadodara and Rajkot. The remaining supply comes from states like Uttar Pradesh, Punjab and Delhi.
Explaining the impact of GST on the paper industry, Bhupendra Gandhi, vice president of the Federation of Paper Merchants in India, said that while retail items may attract nil GST, costs have risen due to the lack of input tax credit and an increase in GST on raw materials from 12 per cent to 18 per cent.
He added that retail prices have gone up by nearly 23 per cent, including GST and profit margins. As a result, the price of paper has increased from around Rs 82 per kg to over Rs 89 per kg. Rising prices of bamboo, an essential raw material for kites, have further added to the cost.
Bamboo, sourced mainly from Assam, has become costlier due to higher prices as well as increased transportation expenses this year. Manja accessories have also seen a price hike, with a firki costing between Rs 350 and Rs 400 per vaar (for nine tar).
Nasruddin Shaikh, a kite maker from the Walled City, said labour availability has become a major concern. “Many workers are shifting to the garment industry, where wages are better. Along with higher GST on paper, this has made kite production more expensive,” he said.