Matchbox price to go up

MADURAI: Representatives of five major matchbox industry bodies have unanimously resolved to increase the maximum retail price (MRP) of a matchbox from Rs 1 to Rs 2 with effect from December 1. The last time the price was revised was in 2007 from 50 paise to Rs 1.
The decision was taken in the meeting organised by the All India Chamber of Matches at Sivakasi on Thursday. 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 for making a matchbox. The price of a kilogram of red phosphorus has climbed from 425 to 810, wax from 58 to 80, outer box board from 36 to 55 and inner box board from 32 to 58. Price of paper, splints, potassium chlorate and sulphur have also increased since October 10. Increasing diesel price has also burdened them further.
Secretary of the national small matchbox manufacturers association V S Sethurathinam told TOI that manufacturers are selling a bundle of 600 matchboxes (with 50 matchsticks in each box) for 270 to 300. “We have decided to increase the selling price from our units by 60% to 430-480 per bundle. This is excluding 12% GST and cost of transportation,” he said.
However, the effective price at which it would reach the consumers would double. “We discussed fixing the MRP at 1.5 a box. But it would lead to a lot of confusion as traders would have to search for 50 paise coins that are hardly in use now. There could be initial setbacks due to the price hike but people will get used to it as the matchbox is still among the least priced commodities they buy,” he added.
Around four lakh people are directly (3 lakh) and indirectly (1 lakh) employed in the industry across the state 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 during the rainy season, as they are much more remunerative. Matchbox makers are paid based on the basis of their ability to make boxes. Women are paid 240 to 280 a day and men around 300 to 350 a day.
Nearly 120 industry representatives from the matchbox hub Kovilpatti in Tuticorin district, Sankarankovil and Thiruvengadam in Tenkasi district, Virudhunagar and Sivakasi in Virudhunagar district, Gudiyatham in Vellore district and Kaveripattinam in Krishnagiri district participated in the meeting.