Lukewarm cracker sales this Diwali
Updated: Oct 28, 2013 04:12:20pm
New Delhi, Oct 28 (KNN) A sharp rise of about 40 per cent in prices of firecrackers has led to a steep decline in sales from production centres like Sivakasi in Tamil Nadu and wholesale markets in major cities including the national capital, hitting in the process small and medium businesses.
The firecracker industry which is mostly in the SME segment is facing the double whammy of inflation and demand slowdown.
“Because of high inflation and economic slowdown we don’t have customers this year. The orders have gone down by almost 50 per cent,” said Proprietor of New Royal Fire Works, Khemchand Srivastava from Sadar Bazar here.
“Most of our orders are kept in our godowns and we have cancelled all further orders. Because of fuel price increase, overall prices of the crackers have gone up by 30 to 40 per cent,” Srivastava added.
Expressing concern about business this year, crackers wholesalers in the wholesale markets, going by the relatively less rush this year, say that to them it appears as if Diwali is not this week but a month away.
Even the cracker manufacturers in Sivakasi are facing a similar slowdown.
“Production has gone down by 25 per cent and the prices have increased by 25 – 30 per cent this year,” said J Ganesh from Gopi Agency for fireworks in Sivakasi.
“The sales have gone down so massively that we have closed down for the season. Diwali is all about crackers, but because of high inflation and slowdown, there is less enthusiasm this year in the market,” Ganesh added.
Moreover, police departments in different state governments have cracked down on unlicensed manufacturing units and sellers. Many units have shut shop in the past one year and thousands of people have lost their jobs.
“Because of safety issues, the police have come up with strict licencing norms. It also has an impact on demand from retailers or wholesalers but more than that it the slowdown which has hit the market,” said a fireworks and crackers wholesaler from Sadar Bazaar.
Sivakasi is a town in Virudhunagar District in Tamil Nadu. The town is known for firecrackers and match factories that produce 70 per cent of the country's produce. The climate here is dry and rainfall very low, facilitating the industry that requires weather to dry the pyro products.
The fireworks are produced here almost all around the year but Diwali is their peak business season.
Today, the industry in Sivakasi is estimated to be worth around Rs 2,000 crore and it employs about four lakh people directly and indirectly. (KNN/SD)
The firecracker industry which is mostly in the SME segment is facing the double whammy of inflation and demand slowdown.
“Because of high inflation and economic slowdown we don’t have customers this year. The orders have gone down by almost 50 per cent,” said Proprietor of New Royal Fire Works, Khemchand Srivastava from Sadar Bazar here.
“Most of our orders are kept in our godowns and we have cancelled all further orders. Because of fuel price increase, overall prices of the crackers have gone up by 30 to 40 per cent,” Srivastava added.
Expressing concern about business this year, crackers wholesalers in the wholesale markets, going by the relatively less rush this year, say that to them it appears as if Diwali is not this week but a month away.
Even the cracker manufacturers in Sivakasi are facing a similar slowdown.
“Production has gone down by 25 per cent and the prices have increased by 25 – 30 per cent this year,” said J Ganesh from Gopi Agency for fireworks in Sivakasi.
“The sales have gone down so massively that we have closed down for the season. Diwali is all about crackers, but because of high inflation and slowdown, there is less enthusiasm this year in the market,” Ganesh added.
Moreover, police departments in different state governments have cracked down on unlicensed manufacturing units and sellers. Many units have shut shop in the past one year and thousands of people have lost their jobs.
“Because of safety issues, the police have come up with strict licencing norms. It also has an impact on demand from retailers or wholesalers but more than that it the slowdown which has hit the market,” said a fireworks and crackers wholesaler from Sadar Bazaar.
Sivakasi is a town in Virudhunagar District in Tamil Nadu. The town is known for firecrackers and match factories that produce 70 per cent of the country's produce. The climate here is dry and rainfall very low, facilitating the industry that requires weather to dry the pyro products.
The fireworks are produced here almost all around the year but Diwali is their peak business season.
Today, the industry in Sivakasi is estimated to be worth around Rs 2,000 crore and it employs about four lakh people directly and indirectly. (KNN/SD)
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