Rains, raw materials’ cost crush match units

Madurai

According to M Paramasivam, president, National Small Match Manufacturers Association, Kovilpatti in Thoothukudi district, due to unprecedented rainfall, the key raw materials required for production could not be dried and they are unable to finish orders. Now, production has been affected by 30 per cent for manufacturers relying on semi-mechanised units, he told DT Next.

D Krishnamurthy, manufacturer-cum-exporter based in Kovilpatti, said production relying on fully mechanised units was not affected since chemical raw materials underwent automated process of drying. But nowadays, price stability is hard to attain as there’s an abnormal increase in price of key raw materials.

The impact of ever higher raw material costs cast a shadow on exports, which suffered a decline by 40 per cent over the last two months, as shippers were not able to price match.

Retail rate revised

To offset such impact, the manufacturers on a whole decided to re-introduce the match stick boxes in the domestic market with a new price tag of Rs 2 each from next March or April. While a box of 35 sticks would be sold at Re 1 and 50 sticks at Rs 2, Krishnamurthy said. Match box is the only consumer product priced at Re 1, for 16 long years now.

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