Rising Input Costs Force Thoothukudi Match Manufacturers to Pause Production

Rising Input Costs Force Thoothukudi Match Manufacturers to Pause Production.webp

Thoothukudi, April 9 – The match manufacturing industry in southern Tamil Nadu will remain closed from April 12 to 25, as manufacturers have announced a complete shutdown in protest against the sharp increase in raw material prices and alleged hoarding by wholesale traders.

Industry representatives have urged the state and union governments to intervene immediately and initiate discussions to resolve the crisis. The decision to shut down was made jointly by manufacturers' associations in Kovilpatti, Sattur, and Sivakasi – key centers of India's match production.

The move is expected to directly impact nearly five lakh workers employed in the sector, which generates around Rs 800 crore in domestic trade and Rs 600 crore in exports annually.

Manufacturers say that the surge in input costs has made it financially unsustainable to continue operations, particularly while maintaining the long-standing retail price of Rs 1 per matchbox. The crisis has intensified following global supply disruptions linked to the ongoing conflict in West Asia involving the United States, Israel, and Iran.

According to industry data, the price of paraffin wax has risen sharply from Rs 80 to Rs 165 per kilogram, while sulphur has jumped from Rs 26 to Rs 81 per kilogram. The price of phosphorus has increased from Rs 605 to Rs 646 per kilogram, and potassium dichromate from Rs 276 to Rs 345 per kilogram.

Other materials such as potassium chlorate, carton boxes, BOPP reels, and match splints sourced from Kerala have also witnessed significant price hikes.

M. Paramasivam, president of the National Small Safety Match Association, alleged that wholesale traders are hoarding raw materials, creating artificial shortages in the market.

He said that despite procurement attempts, adequate supplies have not reached manufacturers since the conflict began. Describing the situation as critical, he warned that the industry cannot sustain operations under current cost pressures.

He urged authorities to take strict action against hoarding practices and ensure fair pricing and availability of essential inputs.

With production set to halt for nearly two weeks, industry stakeholders fear serious economic consequences, including wage losses for thousands of workers and disruption of supply chains, unless urgent corrective measures are implemented.
 
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economic impact government intervention india industry protest kovilpatti match manufacturing paraffin wax phosphorus potassium dichromate price increase raw material prices sattur sivakasi sulphur supply chain disruption tamil nadu wholesale trade worker impact
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