Adverse factors affecting fireworks industry

Prices rise 10 per cent compared with the last two years

Despite price rise, the industry is optimistic about robust sales. A good monsoon means high rural incomes and more sales of fireworks.


The fireworks industry is readying to face a cracker of a season. Despite combination of adverse factors — environmental issues, labour shortage, increase in raw materials costs and higher transport charges — the industry's production is expanding. But prices of fireworks are, however, up 10 per cent this year as compared with the last two years.

Industry representatives attribute the price rise to increase in the cost of raw materials.
Cost of cellophane paper used to wrap crackers was Rs 950 per ream in the year 2005 and now it is Rs 1,300 per ream (open market prices are occasionally higher).

"In India only one company based in Kolkata is making cellophane paper. The company was locked-out for seven months which lead to higher prices," explained Mr A.P. Selvarajan, President, Tamil Nadu Fireworks and Amorces Manufacturers' Association. Firecracker manufacturers have now moved to tissue and craft paper because of the high cost of cellophane paper.

"We can import cellophane paper from China, Germany or Indonesia but Octroi charges are high," said Mr Selvarajan. In addition, he said, increase in metal prices worldwide will affect profit margin.
The price of aluminum powder that was Rs 139.25 per kg in 2005 is now quoted at Rs 176.05 a kg.

The price of gum (potato paste) is also up over two times to Rs 800.
Due to safety regulations firecrackers are no longer sent by rail. Goods trains accept only five wagons on one rake and it takes 45-60 days for the consignment to reach its destination. So, producers have opted for lorry services (originating from Namakkal), which take only 5-6 days, he added.

Labour shortage is another concern due to spinning mills mushrooming in and around Sivakasi. Women, in particular, choose to work in spinning mills than in fireworks. So machines are used to complete the work. No wonder, paper tubes that were handmade are now done by machines.
Mixing of chemicals is done manually. But even here machines are being introduced. "We have a mixing plant on trial and if it proves to be successful it will continue to use it," Mr Selvarajan asserted.

With improved technology, there is no room for child labour anymore. The Department of Explosives and Labour department make inspection visits to plants. "This year we have made crackers in such a way where the noise level is within the stipulated decibel," he said
Despite price rise, the industry is optimistic about robust sales. A good monsoon means high rural incomes and more sales of fireworks because of improved purchasing power. The industry is hopeful of achieving a 10 per cent sales growth this year.