Durga Puja celebrations at risk amid Kolkata protests and sponsorship cuts

Protests over the rape and murder of a trainee doctor in Kolkata are hitting West Bengal's Rs 50,000 crore Durga Puja economy, causing declines in consumer demand and corporate funding

The ongoing protests in Kolkata, sparked by the tragic rape and murder of a trainee doctor at RG Kar Hospital, are posing a threat to the city’s Durga Puja celebrations, which are integral to West Bengal’s Rs 50,000 crore festive economy.

The usual surge in consumer spending and corporate sponsorships leading up to Durga Puja has been disrupted by these protests, which have persisted for over a month.

Social media has also amplified calls for more subdued celebrations this year. This disruption has raised concerns among brands about a potential decline in demand for apparel, fashion items, fast-moving consumer goods, and dining services during this crucial season. The situation could adversely affect their financial performance for the October-December quarter, given that West Bengal typically accounts for 15-20 per cent of national festive sales, according to a report by The Economic Times.

Companies that have traditionally financed the pujas are now hesitant to commit to sponsorships. They fear that high-profile advertising could harm their brand image during the period of public grief and outrage following the incident at RG Kar Medical College and Hospital. This caution is reflected in the reduced sponsorship amounts and commitments, the report notes.

The Forum for Durgotsab, which represents community puja organisers in Kolkata, has reported that pujas in the city have received only 40-45 per cent of their usual sponsorship funds at this point, compared to the 70-80 per cent typically secured by this time. This shortfall in sponsorship is affecting the ability of organisers to prepare for the festival as planned, the report said.

Executives from several leading brands have indicated that they are adopting a cautious approach to sponsorship decisions.

The report quoted a senior executive from a major consumer electronics brand as saying that the company has significantly reduced both the number of pujas it will sponsor and the sponsorship amounts compared to the previous year.

Saswata Basu, general secretary of the Forum for Durgotsab, explained that several sponsors have delayed or withdrawn their commitments, the report said. He said that the arrangements for pandals, lighting, and Durga idols were finalised in June and July, prior to the incident.

He further said, “The entire budget was drawn accordingly. But now, we are not getting the financial commitment from sponsors. It’s worse than Covid-19 year since back then, we had voluntarily cut the puja budget.”

If we don’t secure last-minute sponsorships, the financial repercussions could extend into the following years, forcing organizers to incur personal debt to cover expenses, he said.