The cash crunch caused by the Indian federal government’s demonetisation exercise has turned Christmas into a subdued affair this year in Kerala.

Jobs have been lost, business activities have shrunk, there is very little cash in hand for most people, and the overall mood is downbeat in the state.

And while the people are making do with the limited amount of cash that is available from banks, the state government is going through its own troubles, owing to a sharp drop in revenue earnings, particularly because of a drying up of land registration deals after the demonetisation announcement.

To add to the gloomy picture, there will be no new movies during the Christmas season in Kerala this year, owing to differences among film producers, distributors and theatre owners in the state over the revenue-sharing formula.

Shops in the state are not stocked up as usual for the Christmas season and traders say that the cash crunch has severely affected business of all kinds of goods. Some traders say that Christmas shopping normally starts by November end, and that this time the buyer interest is amiss even into the peak Christmas season.

Many of the daily-wage earners are also in grief because their employers have laid them off owing to unavailability of cash, and several middle class families are cutting back on spending to hold on to the limited cash that they have been able to withdraw from banks.

The setback caused by demonetisation is most conspicuous in bakeries in the state. Contrary to a big rush for cakes during Christmas season, this year no big piles of Christmas cakes are seen in bakeries as the bakery owners had anticipated business to be dull.

Meanwhile, the mood is gloomy on the film front because of the cancellation of all new movie releases. The four major movies that are being denied a chance for Christmas release owing to the tussle between producers and exhibitors are Mohanlal’s Munthirivallikal Thalirkkumbol, Dulqer Salman’s Jomonte Suvisheshangal, Prithviraj’s Ezra, and Jayasurya’s Fukri.

source: GULF NEWS