Not a cracker of a Deepavali as sales dip

Madurai

 Unlike previous years, market uncertainty prevails this time. A lot is at stake as the Supreme Court’s verdict is expected in a case seeking to allow sales of firecrackers across the country, according to K Mariappan, general secretary, Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA), Sivakasi. Citing air pollution, the Supreme Court had banned the sales of firecrackers in the National Capital Region in 2017. Adding to this, the apex court, in another case, reserved its order on a plea seeking a nationwide ban on firecrackers.

Fearing a loss of seasonal business if the verdict goes against them, retail traders and other stakeholders didn’t show much interest in procuring crackers this year. The prevailing unhealthy market trend has led to some panic selling in the streets of Sivakasi as retail traders want to clear the stocks ahead of Deepavali even at a lesser price. Now, the fate of cracker manufacturers, retailers and those relying on this trade lies with the Supreme Court.

Compared to the average annual production of crackers at a cost of Rs 6,000 crore, this year it has come down to Rs 4,000 crore. The finished goods were moved to retail traders, but it’s yet to be seen if sales would pick up, Mariappan told DT Next.

Normally, traders from New Delhi, Maharashtra, Gujarat, Rajasthan, Punjab and Haryana would place bulk orders for procuring crackers before July, but not many orders were received this year. The pollution level of the firecrackers was well within the prescribed standard of Environment (Protection) Rules, 1986, ahead of Deepavali. The air pollution in Delhi could be high due to various factors such as vehicular emissions, stubble burning, coal-fired thermal power plants and particulate matter.

Mariappan said bursting of firecrackers in many foreign countries has become an exception. If the verdict goes against the manufacturers and traders, the future of around eight lakh workers, including three lakh employed indirectly by the sector, would be bleak.