Cracker companies cut profits to keep prices low

Though the stalls were set up recently, the sellers claim the sales this year are looking good and, with strict regulations being enforced on roadside and pavement firecrackers sales, they are expecting a higher than usual turn out of buyers by the weekend. 

“Sky fountain crackers are selling a lot among the youngsters, apart from the regular sparklers and ground spinners and we are seeing a lot of sale of firecracker gift boxes. Another item that’s selling fast are the new types of fancy firecrackers, especially varieties like the butterfly and silver crackers. The new green coloured coconut tree shaped fountains are also quite popular with the buyers,” says Abdul Rahman, Joint Secretary, Chennai Fireworks Welfare Association. 

With 28 per cent GST being levied on fireworks this time, a dip was expected in the sales this Deepavali. However, the association claims a timely intervention by the manufacturers have averted the price hike of crackers. “We already had a very high tax on fireworks even before the GST was put into effect. There is only a marginal difference in the tax figures. Besides, this time, because we know it will be a concern for the buyers, fireworks owners have got together and decided to cut down on their profits to keep the prices the same. 

All the manufacturers have cut down their profits by 25 per cent and has adjusted the GST in their own profits. So, there is not much of a difference for the buyers because of GST. We are also trying to get this information out to the public as much as possible so that people will not be apprehensive about coming down to the stalls to buy the fireworks,” explains Abdul Rahman.

Ranjitha Shankar, a bank official, who was seen buying crackers at the setup, said, “As a regular buyer of fireworks for my family, there is no doubt that the crowds are not as much as last year. While the costs have indeed gone up, we’ve made a conscious decision not to spend too much considering the harm caused to the environment. Having said that, fireworks are an inseparable part of the festival, so it’s important to keep the tradition alive while also making sure you minimize the harm you cause.” Though these are early days, the sellers are confident the sale will be good this year. “We were concerned that the sales would be low this time because people would assume the firecracker prices will be high. However, we have already sold a good number of products by now, even though we opened the stalls very recently. 

But, a major part of our sales happens closer to the day of Deepavali. So, we are expecting a good rush during the weekend and on the first two days of the next week. We are sure the sales will be high this year as well. We’ll know how good by early next week,” says Raja, a firecracker vendor.