WILL THEY COLLAPSE? - CRACKER UNITS


The crackers are used for many occasions which goes without saying.  For example, most important festival Deepavali, celebration for winning elections, successful wage agreements between employer-employees, marriage related processions, last journey processions and much more.

The crackers manufacturers are basically operating from Sivakasi which is termed as fireworks hub of India.  The day-to-day activity usage of matchboxes for lighting lamps, cooking gas is also manufactured in Sivakasi.  

The President of Fireworks Manufacturers Association was of the opinion that it is the usual business for big manufacturers and production cut upto 30% for small manufacturers.  The orders for Ganesh Chaturthi, which is less than a month away, is not encouraging.  The President of the Association requested the Prime Minister of India by a letter to announce that Deepavali celebrations will happen with physical distancing norms.  The Industry people are in a state of fear about Deepavali festival due to the lockdown status and COVID-19 pandemic.

The industry covers more than three lakhs employees directly and more than five lakhs employees indirectly.  Over 1,000 licensed manufacturers are operating at Sivakasi with an approximate market size of Rs.3,000 crores.  The industry faces cancellation of orders by wholesalers, distributors and retailers pushing the employees to the brink of darkness.

A manufacturer does only 70% crackers with reduced employee strength.  This manufacturer opines the industry will collapse if Deepavali is not happening.   In order to check the emission level which will help control COVID-19, samples sent to the National Environmental Research Institute.

A manufacturer says only select items are made in his factory that will be sold.  He accepts orders gleefully whatever order comes in his way.  Illegal units were badly affected as there was no cash flow.  Manufacturers depending upon marriage and other functions were badly hit with heavy loss.

Another manufacturer says in order to continue production without any impact, start the same in the month of December and collect advance payments by January/February.  The Deepavali sales is on tenterhooks as manufacturers await outcome of business for Ganesh Chaturthi.

Prospective people wary of visiting Sivakasi as no proper transport in place due to COVID-19 pandemic.  A fear grips in such a way that people may not spend on crackers as many people face little business, salaried people face lay-off, reduced working days, cut in remuneration, etc. in various other fields of business.








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