The ban being imposed on fireworks by one State after another amid the COVID-19 pandemic has come as a rude shock to the industry, which has been focusing on exports.
Several States have taken the lead from Rajasthan and imposed a ban on the sale and bursting of crackers during Deepavali. “It looks like all our hard work for a whole year is being rendered waste by the ban. We are helpless,” said Ganesan Panjurajan, president of the Tamil Nadu Fireworks and Amorces Manufacturers’ Association.
The industry hopes the Centre will help it to survive. “We have sought the intervention of Prime Minister Narendra Modi, who can ask the States to allow bursting of crackers during Deepavali,” Mr. Ganesan said.
Based on the industry’s request, Tamil Nadu Chief Minister Edappadi K. Palaniswami has written to a few States urging that they reconsider their decision. However, more States are planning to ban crackers, fearing the emissions may further harm those affected by COVID-19.
Credit to dealers
The industry starts production based on advances given by dealers nationwide. Many units also take bank loans. “However, almost every company has to give credit to the dealers to distribute fireworks in far-off regions. The money is collected after Deepavali,” said N. Elangovan, general secretary, Federation of Tamil Nadu Fireworks Traders’ Association.
The industry that usually makes a turnover of ₹2,000 crore during Deepavali suffered a 30% production loss when the units were shut for 43 days owing to the lockdown. “Out of the current turnover of ₹1,400 crore, almost 90% of the market is in the north Indian States. With bigger States banning crackers at the last minute, more than 50% of the goods are getting piled up,” Mr. Ganesan said.
All these States had allowed the traders to get licences to open shops only a few weeks ago, Mr. Ganesan said, wondering what happened in the intervening period. Even the U.S. and Japan had encouraged fireworks display in July amid the pandemic. “Would not these developed countries have taken into account any adverse impact of emission amid the pandemic?” he asked.
The traders, too, have made huge investments. “This ban will devastate the traders who have taken huge loans,” said Virudhunagar MP B. Manickam Tagore.
Industry representatives said they have turned to making green-crackers based on the CSIR-NEERI recommendations, making huge changes to their processes. “When the Centre itself accepts that green-crackers have lower emissions, what else can the industry do?” he asked.
Mr. Ganesan said the ban would affect the industry’s plan for exports. “If India itself does not use our goods, will not other countries have fear in buying our goods?”
Over 1,000 units in Sivakasi usually resume work after 15 days of holiday following Deepavali.
“If more than 50% stocks are not used this year, we may not need to resume operations next year,” he said. This would affect allied industries such as printing, packing and transport, besides around 8 lakh employees. Even the banks that had lent huge sums to the industry would suffer, he said.