New Delhi: Matchsticks used to cost 25 paise almost 40 years ago, then jumped to 50 paise a decade or two later. The last time matchstick box prices reached a high point was in 2007, when the price was raised to Re 1. The price has been doubled for the first time in more than a decade, and each box will now cost Rs 2.
The Indian population is littered with matchboxes. It could be for domestic motives, religious reasons, or personal reasons. What used to be a cheaper alternative to loose change is now worth twice as much.
The All-India Chamber of Match Industry unanimously agreed that the price should be raised, citing rising raw material costs as a reason. Retailers are currently selling a 600-large bundle of matchboxes with 50 matchsticks each for Rs.270-300. With the revised rates in effect from December 1, the same package will now cost Rs 430-480, representing a nearly 60% increase. Furthermore, this rate does not include the 12% GST or transportation costs.
Matchstick production is concentrated in the country's southern regions, with Tamil Nadu accounting for about 90% of total production. Women and men in the surrounding area rely on these manufacturing plants to make a living, with the former outnumbering the latter in terms of population.
The cause of the price increase is the rising cost of raw materials in the current economy. “A total of 14 raw materials go into making matchsticks. The highest climb is seen in the prices of red phosphorus, i.e., from Rs 425 to Rs 810 per kg. Following this, wax is now Rs 80 as compared to the initial price of Rs 58. Similarly, inner and outer boxboard prices have increased from Rs 36 to Rs 50 and Rs 32 to Rs 58, respectively. In addition, increasing diesel prices have also burdened the cost of matchboxes,” VS Sethurathinam, secretary, National Small Matchbox Manufacturers’ Association, told The Times Of India.
Like matchsticks, the Matchbox industry is fading away. According to a TOI report, in 2015, the industry experienced a huge 25% drop, resulting in the closure of over 8,000 manufacturing units till the time of the study. India currently exports matchsticks worth Rs. 240 crore, a figure that is steadily declining.
#mute
