Ground report from Fireworks City Sivakasi: Cracker industry in crisis, business of 6 thousand crores, there is stock of firecrackers, but no buyer, this time production is 45% less

In Sivakasi there are 1,070 registered and about the same number of unregistered units manufacturing firecrackers.

The city of Sivakasi in Tamil Nadu is famous as the Fireworks City of the country. Almost every family here contributes to the gaiety of the festivals. 90% of the country’s firecrackers are made in this city. In Sivakasi there are 1,070 registered and about the same number of unregistered units manufacturing firecrackers. Of these, eight to 10 lakh people have got direct and indirect employment. There are 15 days left for Diwali, but this time also the firecracker makers are not as excited as before. Large quantity of stock is kept with the dealers. Many manufacturers have reduced production by up to 50%.

Murugeshan of Tirumurugan Fire Works says, “For three years there is a ban on firecrackers on Diwali. Many manufacturers and dealers have huge quantity of firecrackers left. Firecrackers have been banned in Delhi and NCR. Sivakasi’s firecracker industry is around Rs 6,000 crore. In this, Delhi and NCR have a share of about 15% i.e. Rs 900 crore.

Big companies are taking the risk of manufacturing firecrackers like pre-Corona, but small and medium scale manufacturing units are working only 50% of the total capacity. Many manufacturers believe that dealers, especially those from North India, are skeptical about lifting the goods from Sivakasi. On the export potential of the cracker industry, industry expert Amarnath said, exports from the city were suspended since 1997 due to difficulty in getting No Objection Certificates (NOCs) from Colombo and Singapore.

Appealed to Tamil Nadu government to provide NOC facility to the industry to revive its lost business. If NOC is obtained, we can export 2,000 containers of crackers. Kathirvel of Aspire Fireworks Factory says, “There is a 60% drop in new orders. The stock movement is very sluggish in southern states like Andhra Pradesh and Karnataka.

80% of the number of crackers sold throughout the year is only on Diwali.
Federation of Tamil Nadu Fireworks Traders general secretary N Elangovan said, “We depend on Diwali for sales. Firecrackers worth about Rs 3,500 crore are made every year. Out of this, 80% sales happen on Diwali. Velmurugan, owner of leading firecracker maker VV Manufacturing, says, “This time too there is uncertainty.

Large orders are getting cancelled. The dealers who had given advance money are also not taking crackers. Don’t know how many states will allow bursting of crackers? Last time on Diwali, some states had banned. So how will one take the risk?