The decision is expected to affect nearly 5 lakh workers, most of them women, engaged directly and indirectly in the industry across Kovilpatti, Sattur, Sivakasi, Sankarankovil, Thiruvengadam, Gudiyatham and Kaveripattinam.

Manufacturers said prices of key raw materials, including phosphorus, chlorate, wax, paper and cardboard, have increased significantly. They reported supply constraints, particularly for wax, cardboard and polythene, which were sourced from Iran.

They added that domestic suppliers have also raised prices, citing the conflict. Wax prices have increased from about Rs 80 per kg in recent months to Rs 150 per kg. Polythene bag prices have risen to between Rs 60 and Rs 100 per kg, depending on quality.

Producers stated that rising input costs have made production unviable, with an increase of Rs 40 to Rs 50 per bundle. They said export operations have also been affected due to the conflict.

Ma Paramasivam, president of the National Small Match Manufacturers Association, said the industry, which has over 100 years of presence in India, generates around Rs 1,400 crore in trade annually, including Rs 800 crore domestic and Rs 600 crore exports.

He stated that apart from GST-related challenges and competition from plastic lighters, the current increase in raw material prices has further strained the sector. He added that manufacturers are unable to raise product prices, leading to losses.

He said the temporary closure is intended to highlight the issue to raw material suppliers and the government, and warned that prolonged disruption could affect workers’ livelihoods.