There may be less noise and sparkle this Diwali. Despite a good monsoon, the slowing economy seems to have taken its toll on firecracker sales.
The industry says there has been a “substantial drop” in demand. Prices have been hiked by 10-15 per cent due to the weak rupee (manufacturers import various chemicals, including aluminium powder and barium carbonate) as well as a labour shortage and the resultant drop in production.
Sivakasi, with 700-800 units, is the nerve-centre of the country’s fireworks manufacturing industry. The town, located in Tamil Nadu’s Virudhunagar district, accounts for over 90 per cent of India’s Rs 2,500-crore value output. At the retail end, the market is estimated to be worth over Rs 8,000 crore.
According to Raja Singh Chelladurai, Director, Jumbo Fireworks (also a promoter family member of Standard Fireworks), there has been a drop of at least 20 per cent in offtake so far. “We do not expect any great sales in the next week or so either,” he added. Endorsing this point of view, A.P. Selvarajan, Managing Director, Kaleeswari Fireworks, said there had been a substantial drop in production as well.
Last year, too, production fell by about 20 per cent due to factors such as labour shortage and loss of man-hours following regulatory restrictions in the wake of a major accident.
This year, Government authorities have tightened regulations further, and this has resulted in an additional loss of working hours, said Chelladurai. “This led to an almost similar drop (to last year) in production,” said S. Srinivasan, Additional Secretary, Tamil Nadu Fireworks & Amorces Association.
ravikumar.r@thehindu.co.in