THOOTHUKUDI: With the prices of raw materials soaring, safety match manufacturing units have decided to suspend operations for 12 days from April 6. It may be noted that the price of one matchbox was hiked to `2 from `1 in November last owing to the rise in prices of raw materials.
Over 300 semi-automated match factories, 50 fully-automated factories, and over 1,500 packaging units in Thoothukudi, Virudhunagar, Tenkasi, Gudiyatham, and Kaveripoompattinam will remain closed between April 6 and 12, said National Small Match Manufacturers Association Secretary VS Sethurathinam.
"The price of raw materials have increased by over 40 per cent recently due to the sharp increase in fuel prices. A pack of cardboard, which cost `45 three months ago, now costs `68, while the prices of wax and potassium chlorate have jumped from `80 and `90 to `120 and `110 respectively," he said.
The association has urged the State government to take steps to supply raw materials to the match units through the Tamil Nadu Small Industries Development Corporation Limited (SIDCO) so that the prices would be stabilised. Further, the rise in fuel prices, toll fees, and labour wages have affected the production costs, Sethurathinam added.
According to Tamil Nadu Match Manufacturers Association Secretary Kathiravan, the volatility of the raw material prices has made it unfeasible for them to fix a selling price. "So, halting production is the right decision to take right now as it will increase product demand in the market," he said.
To overcome the price rise, the manufacturers had recently hiked the price of a box containing 600 matchboxes to `350 from `300. However, the wholesale traders refused to cooperate, and this was what finally led to a decision to suspend operations, the manufacturers said. The safety match unit owners' associations in other districts too have extended support to the 12-day suspension.