Virudhunagar (Tamil Nadu): In a setback for the firecracker industry centred in Sivakasi, Tamil Nadu, Diwali sales this year have witnessed a drop of Rs 50 crore compared to the previous year, totalling Rs 6,000 crore nationwide. The Tamil Nadu Firecrackers Producers Association spokespersons released data indicating a 10 percent reduction in production during the month preceding Diwali.
“The city of Sivakasi, renowned for its firecracker manufacturing, churned out an impressive Rs. 6,000 crore worth of crackers for the 2023 Diwali festival. These festive explosives found their way to numerous districts and states across India, reflecting the industry's broad reach,” the spokespersons said.
“Factors contributing to the decline in firecracker production became apparent as the spokespersons attributed the decrease to various challenges. Continuous rainfall and stringent factory inspections due to prior accidents resulting in fatalities disrupted the manufacturing process. The overall impact was a notable 10 percent reduction in output leading up to Diwali,” he added.
Compounding the issue, the delayed issuance of temporary firecracker licenses for the festival in Tamil Nadu reportedly cost the state an additional Rs 50 crore in sales compared to the previous year. Nevertheless, an encouraging 95 percent of the crackers dispatched for sale throughout India managed to find buyers.
Interestingly enough small Japanese manufacturers of crackers in this region expressed enthusiasm after their sell during the Diwali. The manufacturers in the region expressed their commitment to resuming production based on the sales outcome of the Diwali festival. They plan to align their production schedules with the rainy season, adapting to market dynamics.
Sivakasi, with approximately 1070 firecracker factories in its vicinity, plays a pivotal role in the industry. The sector directly employs around 3 lakh people and indirectly supports 8 lakh individuals. Interestingly, during the 2022 Diwali festivities, only 70 percent of the crackers were produced, influenced by factors such as a Supreme Court order and escalating raw material prices.
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