Fireworks units fret over cracker ban

The ban being imposed on fireworks by one State after one other amid the COVID-19 pandemic has come as a impolite shock to the trade, which has been specializing in exports.

Several States have taken the lead from Rajasthan and imposed a ban on the sale and bursting of crackers throughout Deepavali. “It looks like all our hard work for a whole year is being rendered waste by the ban. We are helpless,” stated Ganesan Panjurajan, president of the Tamil Nadu Fireworks and Amorces Manufacturers’ Association.

The trade hopes the Centre will assist it to outlive. “We have sought the intervention of Prime Minister Narendra Modi, who can ask the States to allow bursting of crackers during Deepavali,” Mr. Ganesan stated.

Based on the trade’s request, Tamil Nadu Chief Minister Edappadi K. Palaniswami has written to some States urging that they rethink their determination. However, extra States are planning to ban crackers, fearing the emissions might additional hurt these affected by COVID-19.

Credit to sellers

The trade begins manufacturing based mostly on advances given by sellers nationwide. Many units additionally take financial institution 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,” stated N. Elangovan, common secretary, Federation of Tamil Nadu Fireworks Traders’ Association.

The trade that normally makes a turnover of ₹2,000 crore throughout Deepavali suffered a 30% manufacturing loss when the units had been 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 stated.

All these States had allowed the merchants to get licences to open retailers only some weeks in the past, Mr. Ganesan stated, questioning what occurred within the intervening interval. Even the U.S. and Japan had inspired fireworks show in July amid the pandemic. “Would not these developed countries have taken into account any adverse impact of emission amid the pandemic?” he requested.

The merchants, too, have made large investments. “This ban will devastate the traders who have taken huge loans,” stated Virudhunagar MP B. Manickam Tagore.

Industry representatives stated they’ve turned to creating green-crackers based mostly on the CSIR-NEERI suggestions, making large modifications to their processes. “When the Centre itself accepts that green-crackers have lower emissions, what else can the industry do?” he requested.

Mr. Ganesan stated the ban would have an effect on the trade’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 normally resume work after 15 days of vacation following Deepavali.

“If more than 50% stocks are not used this year, we may not need to resume operations next year,” he stated. This would have an effect on allied industries reminiscent of printing, packing and transport, moreover round 8 lakh workers. Even the banks that had lent large sums to the trade would undergo, he stated.