New Telugu films are facing a severe financial crunch this season and some films that are already in production are also experiencing this problem. Veteran trade people say that the Industry is going through one of its toughest financial crunches ever.
With the elections in the state, all political parties are spending a huge amount of money. Leaders at all levels have borrowed heavily from financiers to fund their political activity. As a result, there is a severe dearth of liquidity.
The IPL betting season is also removing liquidity from the market, as huge amounts of money are evaporating in the name of bet money. All in all, this severe crunch is expected to continue for one more month. After the elections and the end of the IPL, money is going to make its way back into the system.