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Cash woes nix fortunes of potential Kannada hits

Last Updated 22 November 2016, 20:50 IST

The cash crisis had crippled the Kannada film industry, with collections at cinema halls plunging by an estimated 90%. But things are looking up since Sunday.

The November 8 ban on Rs 500 and Rs 1,000 notes has directly affected producers, many of whom have suspended shooting.

“Every stakeholder in the industry is in trouble, but producers are the worst hit,” says Munirathna Naidu, president, Kannada Film Producers Association.

 Producers typically borrow about Rs 1.5 crore from financiers a week before the release of their films. They use the money to clear all their dues, and get no-objection certificates.
‘Nataraja Service’ (released on November 17) and ‘Badmaash’ (November 18) hit the screens two weeks behind schedule.

“People aren’t coming to watch films because they have no money in hand. Box office staff can’t give change for Rs 2,000 notes either,” says Sa Ra Govindu, president, Karnataka Film Chamber of Commerce (KFCC).

The situation is slightly better at multiplexes, thanks to online booking.

Santhu Straight Forward and Mukunda Murari were released just before demonetisation. They were doing well, but the collections suddenly dipped when change became scarce. Industry insiders say at least 20% of their profits are compromised.

Box office collections
Box office collections plunged by 90% in the first two weeks of demonetisation. The collection has improved by 30%  in the last two days, trade sources said.

Things are bound to improve in two weeks, once new Rs 500 notes are circulated widely, said N Kumar, film distributor.

Old notes accepted
The cash distress hasn’t affected the 22 units in the industry so badly. Light boys, food vendors, make-up men, and art directors continue to work wherever they are called.

“They are still accepting old notes since they have time till the end of the year to exchange them. It may take about three months for complete normalcy to return,” says Ashok, President, Kannada Film Workers Union.
 

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(Published 22 November 2016, 20:50 IST)

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