INCREASE IN MATCHBOX PRICE FROM RS 1 TO RS 2 |
Credit: india.in.pixels |
HIKE IN THE PRICES
• The last hike in matchbox prices had come in 2007 when the rate of a single box was increased from 50 paise to Rs 1.
• Prior to that, in 1995, the cost of matchbox was increased from 25p to 50p.
• With the upcoming revision, the retail price of matchboxes will be doubled to Rs 2 from the current price of Rs 1 starting from December 1, 2021.
• The decision was taken in the meeting of the All India Chamber of Matches at Sivakasi on Thursday.
• Representatives of five major matchbox industry bodies have unanimously resolved to increase the MRP of a matchbox from Re 1 to Rs 2 with effect from December 1.
REASONS FOR THE LATEST HIKE
• Industry representatives attributed the recent increase in raw material prices as the reason for increasing the price.
• Manufacturers said that 14 raw materials are needed to make a matchbox. The prices of many such materials have more than doubled in the past 14 years, leading to an increase in matchbox manufacturing costs.
• The price of a kilogram of red phosphorus has climbed from Rs 425 to Rs 810, wax from Rs 58 to Rs 80, outer box board from Rs 36 to Rs 55 and inner box board from Rs 32 to Rs 58.
• The prices of other materials such as paper, splint, potassium chlorate, and sulfur, among others, which are required to make a matchbox, have also increased in October 2021.
• The rise in fuel prices is also a factor. It has led to an increase in the transportation cost.
• He also added that the pandemic had a cascading effect on the matchbox industry.
• "The ocean freight charges were increased due to the delay in shipping movements during the pandemic triggering a hike in the price of raw materials," he said.
• However, Sethurathinam said the count of matchsticks in a matchbox would be increased to 50 from the present 36. "When you pay Rs 2, you will get 50 matchsticks."
• "We have decided to increase the selling price from our units by 60% to Rs 430-480 per bundle. This is excluding 12% GST and cost of transportation," he said.
• Around four lakh people are directly or indirectly employed in the industry across Tamil Nadu and more than 90% of the direct employees are women.
• The industry hopes to attract a more stable workforce by paying them better as many are evincing interest in working under the MGNREGS and as farm hands as they are much more remunerative in nature.
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