Matchbox Factories Will Be Closed For 12 Days In Tamil Nadu
Update: 2022-04-03 16:15 IST
Matchbox Factories Will Be Closed For 12 Days In Tamil Nadu
Due to increased raw material costs, matchbox makers in Kovilpatti and the neighbouring districts have chosen to halt operations for 12 days, from April 6 to 17.
Production will decline by 200 crore to 250 crore as a result of the 12-day production halt. Manufacturers have asked the government to cut down prices by acquiring raw materials and distributing them through the Tamil Nadu Small Industries Development Corporation Limited.
V S Sethurathinam, secretary of the national small matchbox manufacturers association that they hope that the government will intervene and lower the price of raw materials, and that wholesale customers will purchase matchbox bundles at a lower price than what the makers have set.
Due to rising raw material prices, manufacturers boosted the sale price of each matchbox from one to two last December. Despite the price increase, wholesalers were able to sell a bundle of 600 matchboxes for between 280 and 400 dollars, depending on the brand. Manufacturers announced on March 22 that wholesale prices would increase by $50 per bundle beginning April 1.
Producers claim that a small number of raw material manufacturers, importers, and suppliers are responsible for the unusual price increase, which they blame on rising manufacturing costs and other causes. Another factor for the price increase is the increase in fuel prices. Maharashtra, Karnataka, and Uttar Pradesh provide the majority of the board and packing materials.
However, wholesalers from throughout the country refused to accept the higher price because the MRP had not changed. They claimed that this would imply a decrease in their profit sharing.
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