Matchboxes manufacturing units to suspend operations from April 6 to 17

‘No steps are being taken by the governments to save the industry by controlling the raw material price’

The matchboxes manufacturing units in Thoothukudi, Tenkasi and Virudhunagar districts will fall silent for 12 days from April 6 as the manufacturers have decided to suspend all operations in protest against the skyrocketing raw materials price and urging the buyers to accept their decision to increase the price by ₹50 per bundle. One bundle has 600 matchboxes.

 Following 50 per cent rise in matchstick and matchbox raw material price in the past 90 days, the matchbox manufacturers decided to increase the price of one bundle by ₹50. However, traders buying the matchbox bundles directly from the manufacturers refused to accept this decision.

 Members of National Small Matchbox Manufacturers’ Association and the Tamil Nadu Matchboxes Manufacturers’ Association met here on Thursday night to discuss the sharp rise in the cost of raw material and the consequent upward revision of matchboxes bundle cost by ₹50. Manufacturers from Thoothukudi, Tenkasi and Virudhunagar districts also participated in the meeting.

 Speaking to reporters after the meeting, the president of National Small Matchbox Manufacturers’ Association, Paramasivan said the Kovilpatti region, manufacturing ₹6 crore-worth matchboxes everyday, was paying huge sum of money to the government in the form of goods and service tax. However, no steps had been taken by the governments to save the match industry by controlling the raw material price.

 The manufacturers were consequently forced to hike the cost of the matchboxes bundle by ₹50 due to the unprecedented increase of raw material price, which had been rejected by the traders buying the matchboxes directly from the manufacturers.

 Considering this unfavourable situation, manufacturing of matchboxes would be suspended by all manufacturers from April 6 to 17 by declaring holiday for the manufacturing and exporting units.

 “The buyers, who have huge stocks of matchboxes in their godowns, refuse to buy our products at the revised rate as they hope to manage the situation (the strike period) with the stocks available with them. Hence, we’ve decided to commence our peaceful protest for getting the right price for our product and the buyers should understand our spicy situation,” said Mr. Paramasivan.