In Channapatna, toy sales have gone down by 70 per cent
Channapatna in Karnataka is well known for its bright and colourful wooden toys - popular with tourists who pass the town on the busy route between Bengaluru and Mysuru. In fact, Channapatna is called toy town - thanks to the popularity of these wooden creations. But coping with the notes ban is no child's play here.
Chalavaraj, a toy seller, told NDTV, "Because of the ban on Rs 500 and 1,000 notes, we are not receiving 100 rupee notes. With 500 and 1000, we take a round figure, because of which our sales have gone down by 70 per cent. The payment to our labourers and factories is also pending. Although the customers have cards and cheques, we don't have facilities for that. We deal in cash only."
D Venkatesh, who runs a toy manufacturing unit, has a similar story. "We need to pay labourers every day for their daily expenses. They should be able to manage their daily expenses. We are supposed to give them 200 to 300 rupees every day. If we don't pay them, how will they come to work the next day? None of the ATMs are open here. There are just 3 ATMs open in Channapatna and there are huge lines. If we stand in the lines, who will look after the place here," he asks.
Even before the notes ban, the toy industry here had been hit by cheaper Chinese toys - crafted to look like the Chanapatna originals.
Mr Venkatesh said, "The Chinese sold their goods at really low prices... toy makers like us kept declining."