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FIRECRAKCER MANUFACTURING COMPANIES SUFFER HUGE LOSSES BECAUSE OF LESS PRODUCTION

By Geetika Raleh . 24th October 2018 08:00pm
FIRECRAKCER MANUFACTURING COMPANIES SUFFER HUGE LOSSES BECAUSE OF LESS PRODUCTION

The firework company in Sivakasi told that the SC has not put a limit on the manufacturing of the firecrackers, but there has been a dip in the orders because of which the company suffered a loss of Rs 2000 crore.

Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA) president T Asaithambi said that the production of firecracker has lowered about 30-40%.

He said, “Earlier, every year, we used to do the business of Rs 6000 crore. While eight percent of our total production is for Tamil Nadu’s consumption, the remaining is for other parts of the country. Due to the ban imposed by the SC last year in Delhi NCR and the petition seeking a blanket ban, our dealers were reluctant to take orders... the cumulative loss of business was around Rs 2000 crore”.

He also said that earlier the dealers would make payments for their next year purchases. But this year no dealer has come forward for the advance payment. Such a situation has led to the reduced production by 30-40%, around Rs 2000 crore.

He also mentioned that the time for bursting the crackers which was announced by the court would also affect the sales.


Mariyappan, general secretary TANFAMA also said that the court should review the petition because the verdict has banned the manufacturers from the use of barium nitrate and aluminum which are the main ingredients in cracker manufacturing.

Mariyappan said that barium nitrate and aluminum are safer chemicals because they only produce whitish silver color in the ground spinners, pencil crackers, and other fireworks. Talking about the decibel crackers, he said that they have not crossed the norms.

He said, “When the issue of decibel levels came to the fore in 1997, the committee formed by the Centre then had stipulated that it should not exceed 125 decibels. We are following that until now”.

The general secretary said that rules are only made a few days before Diwali which makes life difficult for them. He even mentioned that more than five lakh people earn their livelihood from this business.

Despite the gloom that has set in following the stringent rules imposed by the Supreme Court, the manufacturers haven’t disappointed cracker enthusiasts waiting for the festival as this time too, they have come up with new varieties of fireworks.

On the other side, firecracker dealers have their own woes. N Elangovan, general secretary, Federation of Tamil Nadu Fireworks Traderssaid that majority of the dealers hold temporary licenses. And even though they submit their licenses for renewal, the authorities only renew it one week prior to Diwali. This makes the demand rise from 5 % to 10%.

He also expressed concern over avoiding Chinese crackers. He said, “Even as the government claims to have stopped the entry of Chinese fireworks, the reality in the market is different. Since Chinese crackers are made for children, they are penetrating through the toy shops”.