The price of an “essential commodity” matchbox will be increased by Re 1 from December 1 and will be sold for Rs 2. The decision was taken due to increase in the cost of production due to increase in the price of raw materials, said VS Sethurathynam, secretary of the industry body National Small Matches Manufacturers Association, adding that the industry went into huge debt due to the Covid-19 pandemic.
However, consumers will get more matchsticks in a box when they buy it for Rs 2, up from 36 matchsticks to 50 per box.
Asked how the industry survived the coronavirus pandemic, Sethurathynam told The Indian Express, “We had to keep the units running otherwise the workers would have gone to other companies. Matches are an essential commodity like rice, sugar etc. We worked even during the pandemic. The machine which is used to manufacture these matchboxes is worth around Rs 1.5 crore, we cannot let it remain idle. Due to covid restrictions, we got into huge debt.”
Sethurathynam said the proposed price hike has come after a gap of 14 years. There has been an increase in the price of raw materials leading to a jump in the cost of production, he said, adding, “We have no option but to increase the selling (maximum retail price) price.”
There has been an increase in the price of all 14 major raw materials. One kg of Red Phosphorus has increased from Rs 410 to Rs 850, Wax from Rs 72 to Rs 85, Potassium Chlorate from Rs 68 to Rs 80, Splints from Rs 42 to Rs 48. The outer box has gone from Rs 42 to Rs 55 and the inner box from Rs 38 to Rs 48. Thus the cost of all raw materials has gone up manifold.
“Rise in fuel prices is also a factor. This has increased the transportation cost.” Therefore, from December 1, the price of a matchbox will be increased from the current Rs 1 to Rs 2 (MRP).
“After about six months we can review the situation. In 2007, the price was raised from fifty paise to Re 1 per matchstick.” However, Sethurathynam said that the number of matchsticks would be increased to 50 from the current 36.
“When you pay Rs 2, you will get 50 matches.” The price hike will help tide over the situation arising due to increase in cost of production and the decision to hike was taken after discussions with all the unions, he said.
He said that about five lakh people are directly and indirectly dependent on the matchbox industry and 90 per cent of the workforce is women. Tamil Nadu is a major manufacturer of match boxes and Kovilpatti, Sattur, Sivakasi, Thiurthangal, Ettayapuram, Kazugumalai, Sankarankoil, Gudiyattam and Kaveripakkam are the major production centres.
There are around 1,000 matchbox units including small and medium-sized matchbox makers.
(with inputs from PTI)
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