HYDERABAD: The familiar rush for firecrackers has returned to Hyderabad markets ahead of Diwali. However, traders say business remains subdued, with sales estimated to be 30% lower than last year.
Retailers are hoping for a late surge from Saturday, as many families traditionally wait until the last few days to buy crackers. But rising competition from online sellers, higher production costs and delays in issuing temporary licences have left traders worried.
Telangana Fireworks Dealers Association president K Venugopal said business had remained sluggish throughout the year. Traders initially expected sales to decline by 10%, but the growing influence of online sellers had widened the fall to nearly 30%.
Speaking to TNIE, Venugopal alleged that online sellers continued to attract customers through social media despite restrictions on online firecracker sales. Nearly 75% of them use Instagram reels, advertisements and combo offers, while some operate dedicated websites.
Several sellers, particularly those based in Sivakasi, offer ready-made packages at different price points. The discounted deals allow customers to order multiple varieties of crackers from home, putting offline retailers under pressure.
Manufacturers have increased prices by around 10% this year due to higher labour and raw material costs. However, retailers are absorbing the increase rather than passing it on to consumers amid weak demand.
Production costs have risen due to higher labour charges and petroleum-based materials used in packaging, covers, labels, printing and chemicals. Although prices typically increase by 10% to 15% annually, traders are trying to keep selling prices unchanged to retain customers, Venugopal said.
The number of licensed firecracker outlets in Telangana has increased by only 4% to 5% this year, against the expected growth of 20% to 30%. Venugopal attributed the slower growth partly to GST compliance requirements. Those purchasing crackers from distributors must register under the casual taxable person category and pay 18% GST, apart from meeting licensing requirements.
He also flagged delays in issuing temporary licences, saying the notification process often begins late and leaves retailers with little time to complete formalities.
“Even on Friday, some retailers were yet to receive their licences. We have repeatedly requested the authorities to issue notifications well in advance, but the problem persists every year,” he said.
Fire dept issues 7,601 licences for Diwali crackers
Hyderabad: The Telangana Fire Services department has issued 7,601 licences for firecracker sales across the state ahead of Diwali and stepped up measures to ensure compliance with safety norms. Fire Services Director General Vikram Singh Mann reviewed arrangements for the festival and directed officials to remain vigilant and enforce fire safety regulations.