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12-day strike in matchbox industry to bring losses of 200 to 250 crores

- April 3, 2022

Chennai, April 3 (BPNS)

The Matchbox manufacturers association strike for 12 days from April 6th to April 17 will lead to a drop in production by Rs 200 to 250 crores. The association has called for a strike due to the rising prices of raw materials and manufacturers have appealed to the government of Tamil Nadu to bring the prices under control.

Small matchbox manufacturing association national secretary,  V.S. Sethurathinam while speaking to BPNS said,” We are expecting an intervention from the government and we request the Tamil Nadu Small Industries Development Corporation to procure the raw materials and supply to us. This will reduce the price of raw materials .”

It may be noted that during December 2021, the matchbox manufacturers had increased the price of matchboxes from Rs 1 to Rs 2 citing increased prices of raw materials. While the price of one matchbox was raised by 1 rupee, a bundle of 600 matchboxes was sold to wholesalers at a rate of Rs 280 to 400 based on the brand and the manufacturers have announced that there would be a hike in wholesale prices by Rs 50 per bundle from April 1.

Sethurathinam said that eighteen raw materials are required to make a matchbox and the price of most of the raw materials has increased by 30 to 50 percent since December.

While speaking to BPNS, the matchbox association leader said, “ The price of Potassium chlorate has increased from Rs 75 to Rs 110 per kilogram. The price of board has gone up from Rs 48 to Rs 68 and wax price has gone up from Rs 80 to Rs 120 per kilogram and red phosphorus price from Rs 750 to Rs 900 per kilo.”

The matchbox manufacturing association leader said that manufacturers, importers, and suppliers of these raw materials are deciding on the prices and abnormal hikes and that this has led to the increase in prices of matchboxes.

He said that Red Phosphorus is imported from Finland and wax is mostly imported from Iran and Iraq.