1st May 2015

- The Hindu

Small matchbox units face crisis

The survival of safety match manufacturers has become uncertain after the government excluded the industry from small-scale sector.

The new regulation, that came into effect on April 1, allowed large-scale manufacturers to produce matchboxes.

It would certainly be an uphill task for small manufacturers in this traditional industry to compete with large-scale operators, according to J. Devadoss, secretary, South India Match Manufacturers’ Association, Kovilpatti.

The new regulation stated that large-scale operation was allowed in this industry to upgrade it to compete at the global level.

The labour-intensive match manufacturing industry flourished in those days, creating large-scale employment opportunities in drought-prone areas.

Though large-scale production was allowed in the early 1960’s, there was a production ceiling of 5,000 million matchboxes per annum. The ceiling was effected to safeguard the interests of small-scale manufacturers, who largely relied on manpower, Mr. Devadoss noted.

He said in the existing situation, the stakeholders were content with mechanisation of manufacturing units and there was no necessity to upgrade them further.

Currently, the production was going beyond consumption and this situation had caused accumulation of matchboxes. Unfortunately the global demand for matchboxes was also waning, he told The Hindu on Sunday.

If large-scale manufacturers started producing matchboxes, the future of 1,900 small manufacturers in Kovilpatti, Sattur, Sivakasi, Elayirampannai and Ettayapuram would be bleak. Besides, the fate of 1,50,000 direct and indirect workers relying on this industry would be sealed, he said.

Once all production units were mechanised fully, necessity for large workforce would remain a big question. Hence, the government should reconsider this regulation and permit only small manufacturers to protect this industry.

Around 300 semi-mechanised match factories and 40 fully mechanised units were being operational in the region, he said.