Small fireworks units stare at imminent closure in Sivakasi

With no takers for crackers, smaller fireworks units that have worked for over 35 days after a 43-day COVID-19 lockdown is staring at closure.

The owners say that they were struggling to pay their workers as huge stocks of finished goods that have piled up have found no takers.

“Traders across the country were not sure whether there will be any business for crackers this year. Hence, they are not coming forward to place any order. There are not even enquiries,” said V. Arun of Virudhunagar District Small Fireworks Manufacturers’ Association.

Stating that fireworks not being an essential commodity, he said traders were wary of investing in it.

G. Vinayakamoorthy of Meenampatti Fireworks Manufacturers’ Association says that with the lockdown continuing and no public transport, traders from north Indian States have not come here.

With only four more months remaining for Deepavali, by now advance booking for fireworks would have been going on in full swing.

“Neither traders have come nor their orders,” he added.

Both the manufacturers run smaller units, licensed by District Revenue Officer, that employ a maximum of 20 workers each.

“All that stocks that have been cleared so far is just some 20% to 25% piled up. That too because the traders had made advance payment before the lockdown,” said Mr. Arun.

The traders had moved their stocks from fireworks units to licensed godowns only to safeguard their investment,: he added.

Mr. Vinayagamoorthy complained that the few enquiries he got were turning out to be economically unviable. “The traders were insisting on us to sell the crackers for a price lesser that the production cost,” he said.

The small manufacturers complained that their capital, including the borrowings, were fast eroding and they could not sustain the production for more than two to three weeks.