The safety match industry in southern Tamil Nadu is encountering difficulties due to a significant increase in the price of paraffin wax, a crucial raw material used in match production. The cost of paraffin wax has surged from about Rs 80 per kilogram to nearly Rs 130 per kilogram in recent weeks, mainly because of delays in imports from Iran, a key supplier to Indian manufacturers. This petroleum-derived product is extensively utilized in various industries, including match manufacturing, for its ability to facilitate smooth ignition and consistent burning.
Manufacturers in Thoothukudi and nearby districts, known for match production, attribute the sudden price hike to supply disruptions associated with the conflict in West Asia. The conflict has impeded the shipment movement from Iran, impacting the availability of high-quality paraffin wax crucial for Indian match production. While some manufacturers have resorted to sourcing paraffin wax domestically from Chennai Petroleum Corporation Limited (CPCL), the locally produced wax is deemed inferior in quality compared to the imported Iranian wax, affecting certain types of match production.
The sharp increase in paraffin wax prices is beginning to impact the economics of match manufacturing, with producers estimating a rise in production costs by at least ₹10 per carton containing 600 matchboxes. Despite this, manufacturers are finding it challenging to raise selling prices due to intense competition and market limitations. Industry experts caution that if the import disruptions persist and supplies remain constrained, match manufacturers could face stock shortages, potentially leading to a slowdown in production across match units in southern Tamil Nadu.
