THOOTHUKUDI: Condemning the steep hike in raw material prices, safety match manufacturers have announced a factory shutdown from April 12 to 25 and urged the state and union governments to hold discussions with wholesale traders, alleging that illegal hoarding of raw materials has spiralled costs.
The safety match industry employs nearly five lakh people and generates over Rs 800 crore in domestic trade, and Rs 600 crore in international trade.
In the aftermath of the war in the Middle East, the industry has come under severe stress as the prices have increased sharply, posing a major challenge for manufacturers to continue selling a matchbox at Rs 1.
According to industry sources, after the war broke out between US-Israel and Iran, the cost of paraffin wax increased from Rs 80 to Rs 165 per kg, sulphur from Rs 26 to Rs 81 per kg, phosphorus from Rs 605 to Rs 646 per kg, potassium chlorate from Rs 108 to Rs 118 per kg, potassium dichromate from Rs 276 to Rs 345 per kg, carton boxes by Rs 2.50 each, BOPP reel from Rs 168 to Rs 250 per kg, and Kerala match splints from Rs 48 to Rs 55 per kg.
National Small Safety Match Association president M Paramasivam told TNIE that after the war began, none of the purchased goods had reached India, and accused wholesale traders of hoarding materials to create an artificial shortage. “Due to the steep rise in raw material prices, continuing the industry is no longer possible,” he said.
Stating that hoarding and creating artificial shortages are punishable offences, he urged the government to intervene and ensure fair pricing. He said the associations in Kovilpatti, Sattur, and Sivakasi had jointly declared the shutdown.