Demand for crackers picks up, but traders not having a blast

Ludhiana: With Diwali two days away, demand for crackers has picked up a bit in the city, giving some relief to the traders. However, the traders claim they will hardly be able to make much profit this season because of thin margin due to hike in cost of crackers and shortage of several varieties. But they are hopeful that the hiked demand might help them sell off most of their purchased stocks.
Customers are also unhappy over the increased prices of crackers. Moreover, unlike previous years this time only green crackers are available and their rates are on the higher side.
Ashok Thapar, chairman of Ludhiana Wholesale Fireworks’ Association, said, “Since Monday evening, the demand and sale of crackers have got a push. A lot of customers have started visiting markets to make purchases, but it does not mean that the traders will be able to make huge profits. We are already operating on thin margins. On one side our cost of purchase has increased as compared with the last year and on the other, to attract customers we are giving a flat discount of 50%, which has further shrunk our margins. But more footfall has given us a glimmer of hope that most of our stocks might be sold. Going by the earlier response, we had given up the hope of even being able to sell half our stocks.”
Vishal Shally, a cracker trader of the city, said, “Our investments in business this year have increased by 25% to 40%, as now only green crackers are being manufactured and these are costlier. The rate of a small flowerpot pack that was for Rs 55 last year is now being supplied to us at Rs 77. The small pack of sparklers that was available for Rs 38 costs Rs 49 now. Similarly, the pack of small rockets that was available for Rs 170 costs Rs 192. Unfortunately, despite this high increase in cost there has been a drop in our margins, as companies have decreased the MRPs. Customers too are buying fewer crackers due to the high price.”
Chintu Kumar, another cracker trader, said, “The footfall in the cracker market has increased, but the situation is not favourable for us, as a lot of items like ground chakkar and fancy aerial varieties, which are in demand, are short in supply. This year the trend is more towards less noisy crackers.”