Safety matchbox units in TN stop production due to raw material price hike

The shutdown is likely to cause a financial loss of Rs 20-30 crore per day.
Safety matchbox manufacturers submitting a memorandum to Collector on Thursday. (Photo | Special Arrangement)
Safety matchbox manufacturers submitting a memorandum to Collector on Thursday. (Photo | Special Arrangement)

THOOTHUKUDI: Owing to the price hike of raw materials, safety matchbox manufacturers across the State shut down their units as announced earlier. The strike which started on Wednesday (April 6) will go on till April 17. The shutdown is likely to cause a financial loss of Rs 20-30 crore per day.

On Thursday, manufacturers on behalf of the National Small Match Manufacturers Association and Tamil Nadu Match Manufacturers Association submitted a memorandum to Thoothukudi Collector Dr K Senthil Raj requesting him to hold dialogue with the raw material producers so as to control the prices.

National Small Match Manufacturers Association secretary VS Sethurathinam told TNIE that the shut down of over 300 semi-automated match factories, 50 fully-automated factories, and nearly 1,500 packaging units based in Thoothukudi, Virudhunagar, Tenkasi, Gudiyatham, and Kaveripoompattinam will cause `20 to `30 crore loss per day. Since the volatility of the raw material prices had kept the safety match factories at bay, the State government through Tamil Nadu Small Industries Development Corporation Limited (SIDCO) should initiate talks with the duplex boards and potassium chlorate suppliers to control the prices, he added.

Tamil Nadu Match Manufacturers Association secretary Kathiravan said that the raw material suppliers revise the prices thrice in a week, which keeps varying the input cost as well, thus leading to a dilemma on fixing the market price. The government should take up the issues rigging the safety match factories and resolve with an amicable solution, he urged.

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