12-day strike in TN matchbox industry to cause Rs 250 Cr loss

4

The matchbox manufacturers association strike from April 6-17 will lead to a drop in the production by Rs 200 to 250 crore. The association has called for a strike due to the rising prices of raw materials, and the manufacturers have appealled to the Tamil Nadu government to bring the prices under control.

Small matchbox manufacturing association national secretary, V.S. Sethurathinam while speaking to IANS said, “We are expecting an intervention from the government and we request the Tamil Nadu Small Industries Development Corporation to procure the raw materials and supply to us. This will reduce the price of raw materials.”

During December 2021, the matchbox manufacturers had increased the price of matchboxes from Rs 1 to Rs 2 citing increased prices of raw materials. While the price of one matchbox was raised by 1 rupee, a bundle of 600 matchboxes was sold to wholesalers at a rate of Rs 280 to 400 based on the brand. The manufacturers now have announced that there would be a hike in the wholesale prices by Rs 50 per bundle from April 1.

Sethurathinam said that 18 raw materials are required to make a matchbox and the price of most of the raw materials has increased by 30 to 50 per cent since December.

While speaking to IANS, the matchbox association leader said, “The price of Potassium chlorate has increased from Rs 75 to Rs 110 per kilogram. The price of board has gone up from Rs 48 to Rs 68 and wax price has gone up from Rs 80 to Rs 120 per kilogram and red phosphorus price from Rs 750 to Rs 900 per kilo.”

The matchbox manufacturing association leader said that manufacturers, importers, and suppliers of these raw materials are deciding on the prices and abnormal hikes and that this has led to the increase in prices of matchboxes.

He said that Red Phosphorus is imported from Finland and wax is mostly imported from Iran and Iraq.

20220403-132916

LEAVE A REPLY

Please enter your comment!
Please enter your name here