by 30-50 per cent across product categories, according to industry sources.
The impact on the consumer end is mainly owing to a spike in chemical costs due to geopolitical tensions, shipping delays, and a demand-supply mismatch at Sivakasi in Tamil Nadu. India’s fireworks capital Sivakasi contributes around 90 per cent of the country’s production, with an annual turnover of around ₹7,000 crore through 1,070 licensed manufacturing units.
“Due to inflation in raw materials, prices are shooting up, and may range from 30 per cent to 50 per cent depending on products. Overall production costs, other than raw materials, have also increased — like paper, duplex board, yarn, labels and many products,” said J Tamilselvan, president of the Indian Fireworks Association (IFA).
He said that demand had also increased this year due to the closure of several units, because of which manufacturers are not ready to provide the usual discounts.
“Some state governments have relaxed blanket bans on fireworks. In addition to this, the Supreme Court’s positive approach is also helping sales this year. However, the cost of various raw materials has increased like never before,” said Murali Asaithambi of the Sivakasi Fireworks Manufacturers Association (SFMA).
Chief Justice of India (CJI) Surya Kant, along with Justices Joymalya Bagchi and V Mohana, said on October 12 that people should be encouraged to understand the health risks of firecrackers and voluntarily adopt safer alternatives. The court reportedly said it was wary of issuing orders that might be difficult to implement on the ground.
“We will not hurt religious sentiments but at the same time, people should themselves come forward and opt for it. The whole exercise should involve a balancing approach,” the CJI said.
According to T Kannan of the Indian Fireworks Manufacturers Association (TIFMA), the price of a major raw material, sulphur, has increased from ₹75 to ₹140 a kg before easing to ₹100, while the prices of aluminium, sodium nitrate, and saltpetre have also increased.
“The average raw material cost increase is around 30 per cent,” he added.
“Freight costs are also high due to an increase in fuel prices. This is affecting margins, and will affect the end product,” said Tamilselvan. Manufacturers have said that around 60 per cent of planned production has been completed due to surplus demand this season.
In a letter to the government, the IFA has urged it to ensure that a safety distance of 15 m is maintained between two shops.
It added that fireworks shop clusters may be restricted to up to 50 shops at every location, with prior approval from Petroleum
Safety Organization (PESO). “Sales of fireworks products through temporary licence shops may be permitted three months before the festival to allow sellers in all states to plan their purchases in a timely manner,”
