Match industry reels from impact of intense monsoon in north India

As intense monsoon wreaked havoc in Mumbai, Pune and surroundings in Maharashtra, safety matches traders from these regions could not strike a deal with Kovilpatti, the hub of the match manufacturing units in Tamil Nadu. Citing the torrential rain that flooded many parts of the northern States, finished goods could not be delivered to the destinations.

According to M Paramasivam, president, National Small Match Manufacturers Association, Kovilpatti, about 100 to 150 trucks of matchstick boxes would normally be transported on a daily basis from Tamil Nadu, especially from Kovilpatti, Sattur, Sivakasi, Virudhunagar, Sankarankovil and Gudiyattam to meet the demand in northern region. An average truckload would contain about 4,000 cartons, each comprising 600 boxes.

Speaking to DT Next, Paramasivam said despite being an employment generator in the southern region of Tamil Nadu, the industry has been left in the lurch, as it has not been receiving support from any governments. The business has been declining, he said, wondering if it could become obsolete in coming days.

Paramasivam expressed frustration over the illegal import of cigarette lights through Myanmar, though its import from China has been banned. These smuggled lighters are available at a cheap rate, which is affecting fortunes of match manufacturers, he added.

The growth of this low profit margin industry is hindered by several issues such as high GST rate and slash in export drawback by Centre. Not only in domestic market, but the trade in international market is also facing a crisis. Due to such hurdles, the production has declined by about 25 per cent since last year.

G Kathiravan, an export trader of safety matches from Kovilpatti, said export volume has dropped by about 30 to 35 per cent over the year. As export drawback was lowered drastically to three per cent from seven per cent, most of the shippers were reluctant to take up this commodity, he said.

Even the government scheme to provide LPG cylinders and gas stoves has hit the industry, added J Devadoss, secretary, South India Match Manufacturers Association, Kovilpatti. Almost 90 per cent of people in northern parts of India have benefitted from this, he said, pointing out how this reduced the usage of match sticks.

To resurrect this dying industry, the government should lower the Goods and Services Tax to 12 per cent from the prevailing 18 per cent and increase export drawback to boost the morale of manufacturers and traders relying on domestic and international markets, Devadoss said.