The safety match industry in southern Tamil Nadu will undergo a complete shutdown from April 12 to 25 due to soaring raw material costs and alleged hoarding by wholesale traders. This decision, jointly made by manufacturers’ associations in Kovilpatti, Sattur, and Sivakasi, major match production hubs, aims to address the crisis. Nearly five lakh workers, involved in a sector generating about Rs 800 crore domestically and Rs 600 crore through exports annually, will be directly affected.
The industry faces financial challenges as input costs surge, making operations unsustainable while retail prices remain fixed at Rs one per matchbox. Global supply disruptions, stemming from the West Asia conflict involving the US, Israel, and Iran, have exacerbated the situation. Paraffin wax prices have doubled to Rs 165 per kilogram, while sulphur, phosphorus, and potassium dichromate costs have also significantly risen.
Manufacturers are grappling with price hikes in various materials like potassium chlorate, carton boxes, BOPP reels, and match splints sourced from Kerala. The National Small Safety Match Association’s president, M. Paramasivam, accuses wholesale traders of stockpiling raw materials, leading to artificial shortages. He emphasizes the urgent need for fair pricing and availability of essential inputs to sustain industry operations.
The impending two-week production halt raises concerns about economic repercussions, including wage losses for workers and disruptions in supply chains. Industry stakeholders advocate for immediate interventions to mitigate these impacts and ensure the industry’s viability in the face of escalating challenges.
