Tamil Nadu: Firecracker prices likely to rise by 30% this year

CHENNAI: Firecracker prices are likely to increase by around 30 per cent this year owing to a sharp rise in raw material and transportation costs, industry sources said.

According to a Maalaimalar report, manufacturers in Sivakasi, the country's largest fireworks production hub, said the prices of key raw materials used in firecracker production have increased significantly over the past year. The cost of sulphur has risen from Rs 2,800 to nearly Rs 10,000 per 50-kg bag, while the prices of saltpetre and aluminium powder have also registered steep increases.

Industry representatives said most raw materials have witnessed a price hike of 10 to 30 per cent, substantially increasing production costs.

Manufacturers are also facing pressure from advance orders booked at last year's rates, forcing them to supply products at pre-agreed prices despite higher input costs.

In addition, higher diesel prices have pushed up lorry freight charges, further adding to production and distribution expenses.

The industry has warned that the combined impact of rising raw material and transportation costs could not only lead to a 30 per cent increase in firecracker prices but also affect overall production during the current season.