Diesel price rise adds to matchbox industry’s woes

TUTICORIN: Matchbox manufacturers in Kovilpatti and Virudhunagar, who began their 12-day strike on Wednesday seeking steps to control the escalation of raw material prices, lamented that the diesel price hike on a day-to-day basis is making things worse.
The industry which provides employment to more than 5 lakh people had declared stoppage of production till April 17 saying prices of raw materials for making matchboxes have gone up by 30% to 50% in three months.
National small matchbox manufacturers association secretary V S Sethurathinam said lorry operators have increased transportation charges of raw materials by 10% to 15% and of matchboxes by up to 20% due to the diesel price hike over the last two weeks.
A bundle of 600 matchboxes transported from Kovilpatti to Delhi for Rs 32 last month is now charged Rs 40. Another key demand of the industry is to impose a ban on importing cigarette lighters from China.
Industry representatives said they had sent representations in this regard to ministers Thangam Thennarasu (industries), K K S S R Ramachandran (revenue and disaster management) and P Geetha Jeevan (social welfare and women empowerment) besides Tuticorin MP Kanimozhi Karunanidhi.
While Tamil Nadu is the matchbox hub of the country with 50 fully mechanised and 300 semi-mechanised units and over 2,000 packing units, Kovilpatti and nearby areas in Tuticorin district and parts of Virudhunagar account for 75% of the production.