Kerala Candle Manufacturers Association has opposed the continuous revision of paraffin wax prices, saying it will hit candle manufacturing units in the State.
Paraffin wax has been produced by Chennai Petroleum Corporation Ltd, the fully owned subsidiary of Indian Oil Corporation Ltd. The company is having the monopoly of this raw material and is selling it in the State through 14 district outlets of SIDCO.
C.R. Salim Kumar, president of the association, said the prices of paraffin wax had increased by Rs 25,000 in the last one year. It was again raised by another Rs 6,000 a tonne in June making the current price of this raw material at Rs 115 per kg.
The industry could not withstand such an exorbitant hike as it is providing significant employment opportunities especially for women of weaker section of the society, he said.
When the price of crude oil was at the peak level of $ 147 per barrel, he said the rate of the Paraffin Wax was only Rs 82 per kg. However the wax rate rose to Rs 115 per kg, when the crude prices dipped to $ 90 per barrel.
The association was of the view that a Central Pricing Regulatory Committee along could curtail such harmful practices in the market.
When the prices of petroleum products were controlled by the Government, the Association never experienced such continuous hike of Paraffin Wax. But now, the price hike has become a continuous story with the deregulation of petroleum prices, he added.
Seeking a revision of prices of Paraffin Wax to 2011 level, the Association urged the Petroleum Ministry to appoint a Pricing Regulatory Committee to regulate its prices and give exemption on Central Excise Duty to Kerala SIDCO, the sole distributor of CPCL in the state.
The Government should also take steps to fix the price at least to Rs 82 per kg which was prevailing when the crude prices were at $ 147 per barrel, he said.