Credit is a Major Challengein the West Bengal Market:Ujjwal Bhadra
Mr. Ujjwal Bhadra, who has been inthe agarbatti business for 47 years inMalda, West Bengal, believes that thebiggest challenge in the industry todayis credit. In an exclusive conversationwith Sugandh India, he said that whileestablished, quality brands continue tosell well, many companies push excessstock onto distributors and wholesalersby offering higher schemes andmargins.
He explained that selling agarbatti isrelatively easy, as retailers readilystock products on credit—butrecovering payments is difficult. This iswhy most large companies have nowstarted supplying goods on an advancebasis. A distributor cannot afford toblock their capital for one or twomonths. Due to credit-related losses,many newcomers in the trade areforced to exit the business within ayear or two. He emphasized that allcompanies should seriously considerthis issue for the betterment of theindustry. Operating through UjjwalBhadra Enterprises, he shared that hedeals in products from Bengalurucompanies including Padmini, DarshanInternational, Balaji, Ashoka Trading,Purnima, Ashika, Ullas, and Big Bell.
On supply and distribution, he said thatmost goods arrive via truck which isthen supplied to regions like Islampur,Dalkhola, Balurghat, Berhampur,Malda, and Raiganj. He described theMalda market as strong, with localproduction of agarbatti (referred to as“kacchiagarbatti”) taking place inareas like Khairatipara, Mangalwadi,and Ghoshpara. These are suppliedacross West Bengal, Bihar, andJharkhand, although he himself is notinvolved in that segment.
He noted that products from Bengalurudominate the Malda market, along withdemand for brands from other states.
Speaking on taxation, he pointed outthat agarbatti was earlier tax-free.When GST was introduced, thegovernment had indicated that puja andhavan materials would be exempt, butagarbatti—despite being a pujaproduct—was taxed at 5%. He believesthis needs reconsideration.
Regarding consumer preferences, hesaid that people in Malda prefer mild,floral fragrances such as rajnigandha,bela, rose, and sandalwood. Popularbrands in the region include BharatDarshan, Balaji, ITC, Zed Black, andCycle. Among his own sales, Balaji,Bharat Darshan, and DarshanInternational perform the best. Forestand Koyas also have a presence, alongwith products from companiesoffering higher credit and profitmargins.
He mentioned that Balaji productspriced at ₹20 and ₹40 sell well, andthere is demand for 100-stick packspriced at ₹30. Lower-priced products(₹5 and ₹10 MRP) are graduallydeclining, although some still sellunder brands like ITC, Zed Black,Bansuri, etc. He added that the marketcaters to all segments of society, so awide price range continues to exist.
There is also growing demand forjumbo packs (400–500 grams) pricedat ₹325, ₹375, and ₹425. In Malda,agarbatti accounts for about 95% ofthe market, while dhoop holds only5%. Demand for white agarbatti isrising rapidly. Bamboo-less wet dhoophas limited demand, while dryproducts are more popular.
He observed that companies withstrong agarbatti sales also tend toperform well in dhoop. In wet dhoop,Balaji’s Mata Rani, Rajnigandha,Kasturi, Sandal, and Rose variants arepopular, along with Darshan’sMaharaja and Guggal. After Balaji,Manthan is also performing well, withRocket and ITC present in the markettoo.
He added that camphor and dhunahave strong demand, with brands likeCycle and Hari Darshan leading.Sambrani cups are also popular,especially from Cycle, Balaji,Darshan, and Zed Black. However,sandalwood tika does not have muchdemand in this region. Finally, henoted that an average customer inMalda spends ₹100–150 per month onagarbatti, and in urban areas, about30–40% of customers make purchasesbased on brand names.
