Fireworks industry under the shadow of darkness

- Despite a 5 per cent increase in the cost of production of fireworks, manufacturers are forced to sell goods at lower prices

The scent of sulfur, potassium nitrate, aluminum and carbon can be felt as you enter the city of Sivakasi in Tamil Nadu, famous for its fireworks. The South Indian city accounts for about 40 per cent of the country's fireworks production. However, the Kovid-12 epidemic has hit the city's fireworks industry hard. Before the Kovid epidemic, about 3 lakh people were directly involved in the industry and about 3 lakh people were indirectly part of it. Sivakasi, about 20 km from Chennai, is famous for its fireworks. But nowadays there is peace in the whole city. At least 200 fireworks units have been shut down in the city in the last one year. Even the units that are in operation are operating with only 40-50 per cent capacity, industry sources said.

According to data from the Tamil Nadu Fireworks Amors Manufacturers Association, there are currently about 1,050 fireworks production units in Sivakasi. The organization claims that before Kovid, the industry had a turnover of Rs 5,000 crore in 2015-16. It’s not just the Kovid epidemic that has affected the country’s festivals and dampened people’s enthusiasm. The National Green Tribunal (NGT) has banned fireworks in places with poor air quality index. 14 cities of the country fall under the scope of this ban.

The size of the fireworks industry was reduced by 30 per cent last year and this time it is likely to shrink by another 50 per cent, the sources said, adding that only 20 per cent sales (Rs 1,200 crore) are expected this year. However, it will be possible if the government allows the firing of fireworks.

According to estimates by the Indian Fireworks Manufacturers Association, the 18 cities affected by the NGT ban contribute Rs 200-300 crore to the annual sales of Sivakasi. Now the factories are working with very low capacity. If sales do not increase, more jobs will be lost.

According to fireworks manufacturers, the business is now less than half what it was before the epidemic. Even after giving a discount of up to 50%, no buyer comes. The prices of raw materials used in fireworks are also going up. According to manufacturers, the price of aluminum has gone up by about 30 per cent, while paper and its products have gone up by 20-30 per cent. The price of sulfur has also gone up by 100%. The average price of raw materials has gone up by 20-30 per cent. This has led to a 5 per cent increase in production costs. However, manufacturers are forced to sell fireworks at 30 per cent lower prices before the epidemic. Now all their hopes are pinned on Diwali. Business on Onam and Ganesh Chaturthi has already been ruined. Now if the situation does not improve on Diwali, darkness will prevail in Sivakasi.