CHENNAI/COIMBATORE/VIRUDHUNAGAR: While retail cracker shops have been cropping up across the State as Deepavali nears, this year, higher raw material costs and low production loom large over traders and shoppers. Traders in the city predict that cracker prices may go up from 20% to 50% depending on the variety owing to the huge drop in production.
Puneethan, a cracker retailer in Chennai, said prices of most crackers have gone up to 30% as prices of the raw materials, and packaging items like cardboard rose. “Production was hit by rains and legal issues over green crackers. There is a demand-supply gap for some branded items, and sparklers (Kambi Mathappu, Bushvanam in Tamil) as they have to be dried,” he added.
With the industry veering towards green crackers, the production has dropped by 70%, remarked Peer Anees Raja, a trader from Island Grounds and an association representative. “The manufacturing of crackers as per Petroleum and Explosives Safety Organisation (PESO) norms is time-consuming and makers are yet to adapt to this method,” he said.
The after-effects of the pandemic still linger and traders believe that it is not possible to reach pre-Covid levels of sales this year. The total value of crackers sales in Chennai before 2019 is Rs 100 crore (appx.) but just one-third of that has happened in the past two years, add traders.
In Coimbatore, too, the prices in raw materials skyrocketed leading to a spike in this year’s cracker rates. V Chinnusami, president of Coimbatore Retail Cracker Sellers Association said, “A box of sparklers that was Rs 50 last year is now being sold at Rs 65 - 70. A piece of fancy cracker has increased to Rs 70 from last year’s rate of Rs 60.”
Chinnusami added, despite the government’s ban on online cracker sales, there was no regulation, and this would impact retailers. Traders across TN urged the State to crack down on unauthorised sales of crackers, online and offline.
Production in Sivakasi has dropped by 40% across units, explains S Srinivasan, a firecracker manufacturer. This comes after the surge in prices of raw materials, some of which have to be imported, and a drop in market demand due to time restrictions imposed on bursting crackers. “Such a situation has led to an increase in cracker rates,” added the manufacturer from Sivakasi.
Sale of crackers at Island Grounds, Chennai is expected to open for the public from Monday. Preparatory works are under way for the 45 shops to come up. Basic amenities like toilets, pick up and drop facilities for disabled persons, and food courts will be ready soon. Outlets will come up at Purasawalkam, and NSC Bose road.
After complaints from customers over authenticity of green crackers last year, manufacturers and retailers said only branded green crackers will be in the market this year.