Sivakasi cracker shortage drives up demand, price

MADURAI: Fireworks and crackers, which are always the mainstay in Deepavali celebrations are in short supply and with just a fortnight to go for the major festival it is driving up its demand and price.

The imbalance of supply and demand of these manufactured products in Sivakasi, a major centre of fireworks, has improved market conditions, R Rajarathinam, vice president, Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA), Sivakasi said on Sunday.

The significant increase in raw material cost ultimately increased the price of fireworks by about 35 to 40 per cent in the market. The cost of raw material, including chemicals increased by 50 to 60 per cent and papers and board almost doubled, post COVID. There’s no viable alternative for manufacturers other than to increase its market price. Citing these, he sounded optimistic that the price rise would not hurt the business as pricing and discount structures would attract more consumers this time.

Unusually, production was delayed this year and resumed in March owing to market uncertainty and also over the Supreme Court’s decision. The enforcement of the ban on use of barium nitrate, a chemical meant for production of crackers and manufacture of joint crackers, remains strict, curtailing the production. These factors heightened the uncertain situation triggering a production shortfall of 30 to 40 per cent. Above all, most of the manufacturers were witnessing a steady demand for light and sound emitting crackers.

“This time, we have come up with innovative ways to encourage revelers, many of whom for years, joint-crackers are the much sought after, to introduce an alternative option by using chemicals such as potassium nitrate and strontium nitrate- which are expensive and imported,” Rajarathinam told DT Next.

Further Rajarathinam said in the current season, ‘there are about 35 to 40 products in 450 variants. Now, traders have improved their packaging to attract more consumers. To add display value, several products’ packaging is made with transparent materials.”

According to G Abiruben, the other vice president of TANFAMA, Sivakasi, it’s the first time ever the market price of crackers increased unprecedentedly. During last year, 10 days prior to the festival, the ban was reimposed and extended and the case’s not heard in January this year as scheduled and shrouded by uncertainty, production in Sivakasi was halved. However, no doubt, there’s a good response from consumers and wholesale trade has already started in Tamil Nadu.