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Industry & Economy - SSI
States - Tamil Nadu
Tuticorin match units seek incentives

Our Correspondent

Madurai, Oct 25 Match manufacturers in Tuticorin have appealed to the Centre to grant more export incentives and a reduction in excise duty to make the industry more competitive.

According to Mr M. Paramasivam, President, National Small Match Manufacturers Association, due to shortage of labour, a majority of entrepreneurs in the small scale sector engaged in hand-made match boxes have shifted to mechanised processes for frame filling and dipping, box filling, label affixing and packaging etc. with the aid of power. They should not be categorised as ‘mechanised match unit’. This would help them avoid payment of 12 per cent ad valorem rate of excise duty.

Further, due to the decrease in dollar value, manufacturers get only Rs 312 per bundle of 1,000 match boxes while the price is steady at Rs 372 in recent times. The export incentive like duty entitlement pass book ( DEPB) needs to be raised from 7 per cent to 25 per cent, considering the appreciation of the rupee, he said.

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