SIVAKASI WEATHER
Spectre of Chinese crackers threatens industry

18-10-2016
18th October 2016

- The Hindu

Spectre of Chinese crackers threatens industry

Though traders are hopeful of good sales, local manufacturers have not raised prices fearing cannibilsation by imported products

Mixed emotions prevail in the cracker manufacturing industry as the festival season approaches. There is hope that the sales this year would be better compared to last year. At the same time, manufacturers at Indias cracker town, Sivakasi, have not increased the prices this Deepavali, fearing that this would facilitate the entry of Chinese-made crackers into the market. Data indicates that the price of crackers has always gone up by an incremental 10 per cent annually. This year, there has been no such price rise.

“Despite higher raw material and transportation cost, we have fixed prices similar to those in 2015. There is a marginal rise in the price of some products,” said one of the manufacturers, who wished anonymity. According to him, Chinese fireworks are stealing a huge chunk of market share and wrecking the local industry. PCA Asaithambi, President of the industry body Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA) concurred.

Harmful products

“Prices have not been hiked in a big way because we dont want Chinese crackers to come into the market. Though Chinese crackers are far cheaper, they are harmful and are ignited by friction, by throwing or dropping (like a hand grenade) and by connecting to a battery-charge as is used in high explosives. This is dangerous,” Mr Asaithambi said.

According to experts in the fireworks industry, chemicals used in Chinese fireworks are dangerous and lethal. They are prohibited in India. For example, chlorate of potash and perchlorates mixed with sulphur and sulphurates is a deadly composition and highly dangerous.

A.P. Selvarajan, Managing Director, Kaliswari Fireworks, said,” Chinese crackers have not penetrated into a lot of product types. It is not a cause of concern for now, but if the trend continues, it will be a threat.”

Hope remains

All these factors notwithstanding, the industry is optimistic about sales this year and expects it to rise by 10-15 per cent. Mr Selvarajan, said,

“Cracker sales are better this year when compared to 2015. Till August, sales were subdued but it has picked up in the last two months. Last year, sales were affected by a slowdown in the economy and a poor monsoon in the north. But this year, the monsoon has been good,” he added.

Mr Asaithambi, said, “Orders have been flowing in steadily this year.”

The Indian fireworks Industry, in terms of its total annual production, ranks second in the world after China.

According to estimates by TANFAMA, the Chinese industry has a turnover of Rs. 50,000 crore while India has an annual turnover of Rs. 2,500 crore.

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