Tamil Nadu Match Industry Shuts Down Over Soaring Costs, Hoarding

Industry representatives have urged the state and union governments to step in immediately and initiate discussions to resolve the crisis. The shutdown decision was taken jointly by manufacturers' associations in Kovilpatti, Sattur and Sivakasi -- key centres of India's match production.

The move is expected to impact nearly five lakh workers directly employed in the sector, which generates around Rs 800 crore in domestic trade and Rs 600 crore in exports annually.

Manufacturers say the surge in input costs has made it financially unviable to continue operations, particularly while maintaining the long-standing retail price of Rs one per matchbox. The crisis has intensified following global supply disruptions linked to the ongoing conflict in West Asia involving the United States, Israel and Iran.

According to industry data, the price of paraffin wax has risen sharply from Rs 80 to Rs 165 per kilogram, while sulphur has jumped from Rs 26 to Rs 81 per kilogram. Phosphorus prices have increased from Rs 605 to Rs 646 per kilogram, and potassium dichromate from Rs 276 to Rs 345 per kilogram.

Other materials such as potassium chlorate, carton boxes, BOPP reels and match splints sourced from Kerala have also witnessed significant price hikes.

M. Paramasivam, president of the National Small Safety Match Association, alleged that wholesale traders are hoarding raw materials, creating artificial shortages in the market.

He said that despite procurement attempts, adequate supplies have not reached manufacturers since the conflict began. Describing the situation as critical, he warned that the industry cannot sustain operations under current cost pressures.

He urged authorities to take strict action against hoarding practices and ensure fair pricing and availability of essential inputs.

With production set to halt for nearly two weeks, industry stakeholders fear serious economic consequences, including wage losses for thousands of workers and disruption of supply chains, unless urgent corrective measures are implemented.

- IANS