The price of an “essential commodity” matchbox would be hiked by Rs 1 from December 1 and would be sold at Rs 2. The decision was taken due to a rise in production cost, triggered by an increase in the price of raw materials, the industry body said. Secretary of the National Small Matchbox Manufacturers Association, V S Sethurathinam said the industry ran into huge debts due to the Covid-19 pandemic.
Consumers would, however, get more matchsticks in a box when they buy it at Rs 2, up from 36 matchsticks to 50 per box.
On being asked about how did the industry survive the coronavirus pandemic, Sethurathinam told The Indian Express, “We had to keep the units running or else the workers would have moved to other companies. Matchbox is an essential commodity like rice, sugar, etc. We operated even during the pandemic. The machine that is used to manufacture these matches costs around Rs 1.5 crore, we can’t let that stay idle. Due to the Covid curbs, we ran into huge debts.”
The proposed price increase comes after a gap of 14 years, Sethurathinam said. The price of raw materials have increased leading to a jump in cost of production, he said adding “we have no other option but to increase the selling (Maximum Retail Price) price.”
The price of all the 14 key raw materials have increased. “A kilo of red phosphorous has increased from Rs 410 to Rs 850, wax from Rs 72 to Rs 85, pottasium chlorate Rs 68 to Rs 80, splints (sticks) from Rs 42 to Rs 48. Outer box Rs 42 to Rs 55 and inner box from Rs 38 to Rs 48. Like this, the price of all raw materials have increased manifold,” he told PTI.
“The rise in fuel prices is also a factor. It has led to an increase in transportation cost.” Hence, from December 1, the price of a matchbox would be increased to Rs 2 (MRP) from the present Rs 1, he said.
“After about six months we may review the situation. In 2007, the price was increased from fifty paisa to Rs 1 per matchbox.” However, Sethurathinam said the count of matchsticks in a matchbox would be increased to 50 from the present 36.
“When you pay Rs 2, you will get 50 matchsticks.” The price increase would help tackle the situation that has arisen due to the rise in production cost and the decision to go for a hike was taken after discussions with all associations, he said.
About five lakh people are dependent on the matchbox industry directly and indirectly and 90 per cent of the workforce is women, he said. Tamil Nadu is a leading manufacturer of matchboxes and Kovilpatti, Sattur, Sivakasi, Thiurthangal, Ettayapuram, Kazhugumalai, Sankarankoil, Gudiyattam and Kaveripakkam are the major production centres.
Approximately, there are 1,000 matchbox units which includes small and medium sized matchbox manufacturers as well.
(with inputs from PTI)
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