The Hindu Business Line : Match box price may go up from Oct 1

Burning issues
Difficult to retain match units' labour at the current average wage level of Rs 50-60 per day.
The average year-on-year increase is from Rs 7.97 per kg of match wood in 1996 to Rs 11.45 in 2006.
Type-II variety of wax was not available for the small units.

Kolkata , Sept. 27

End-product price revision in the safety matches sector, reeling under rising input costs, is expected now after a long gap of 14 years. The last price revision was in 1992, when the price went up from 25 paise to 50 paise.

Informed industry sources from the Sivakasi-Sathur belts of Tamil Nadu, where this cottage industry is concentrated, told Business Line that the per match box price may go up from the prevailing 50 paise to Re 1 from October 1.

Discussions

It is learnt that meetings are now taking place in Sivakasi and other places among all manufacturers - big and small — on the issue of rising input prices (for wax and wood splints) and reduced margins.

Considering the higher wages paid by the fireworks and the textile sectors in the area, it is becoming difficult for match units to retain labour at the current average wage level of Rs 50-60 per day, it is pointed out.

Sources said several rounds of discussions have already taken place in Sivakasi among members of various trade bodies such as the All-India Match Manufacturers Association, Splints Manufacturers Association and All-India Chamber of Match Industries to arrive at a final decision on end-product price revision.

Splint prices

The recent increase in diesel prices leading to higher transport costs and the threat of a sharp price increase for Kerala splints are seen as the last straw on the camel's back.

Explaining the phenomenon of rising splint wood prices without a corresponding end-product price revision, a Sivakasi-based manufacturer said the average year-on-year increase has been substantial - from Rs 7.97 per kg of match wood in 1996 to Rs 11.45 a kg in 2006.

In terms of price per million splints, the current price hovers around Rs 67 a kg for million splints (42 mm) and Rs 62 a kg for million splints (40 mm). Splint size changed to 40 mm from 42 mm since 1991, and has been further brought down from 40 mm to 39 mm in 2006.

Wax front

On the wax front, it is pointed out that the Type-II variety (preferred by all manufacturers) was not available for the small units, many of whom have been forced to down shutters because of this shortage.

Citing the higher cost of wax per tonne, the Sathur Chamber of Match Manufacturers has sought a price subsidy for actual use of wax by all match manufacturers, and has urged the Government to direct the refineries to reduce the wax price for match units.

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