Demand surges for firecrackers ahead of Ram Mandir inauguration in Ayodhya

Sivakasi manufacturers not bursting with joy as rain, cyclone played spoilsport

Don't want to miss the best from Business Standard?

As Ayodhya gears up for the Ram Mandir consecration ceremony on January 22, the Sivakasi city in Tamil Nadu, which produces over 90 per cent of the country's firecrackers, is witnessing a 20-30 per cent increase in demand from North India alone compared to the last year, according to industry sources.

However, the manufacturers are not sure about a cracker of a sale despite the huge demand as incessant rainfall and cyclone Michaung in Tamil Nadu led to a drop in production. There was no production after Diwali till Pongal, which is unusual, due to continual rainfall, the industry people told Business Standard.

“We are seeing huge demand from North India. However, it is not translating into sales, due to the recent rains. We are unable to produce such a large quantity because of that,” said T Kannan, general secretary of The Indian Fireworks Manufacturers Association (TIFMA). Almost every household in Sivakasi contributes to India’s festival season, providing jobs to around 300,000 people directly and another 500,000 indirectly. There are around 1,175 firecracker manufacturers in the Virudhunagar district of Tamil Nadu, which includes Sivakasi.

“So many parties are asking, in fact, hundreds of customers.  Only yesterday, we saw the sunlight. One party, who got two loads last year, is asking for many loads,” Kannan added.

In cities like Delhi, with the ban on firecrackers lifted by January 1, more such celebrations are expected. This ban included the manufacturing, storage, lighting, and sale of all types of firecrackers, including green firecrackers.

“Generally, we start production around 10-15 days after Diwali. This time, till last week the rain has continued in Tamil Nadu. There was no production at all, after Diwali till Pongal, which was a very rare scenario,” said Murali Asaithambi of the Sivakasi Fireworks Manufacturer Association.

The size of the industry in Sivakasi came down from around Rs 3,000 crore during pre-Covid to close to Rs 2,000 crore now, based on industry estimates.

“People have purchased goods, anticipating the demand due to the temple inauguration. To what extent people will be able to use it needs to be seen. This is a one-time scenario. For almost 40 days, there was no production,” Asaithambi added. The units that are open now are working on 40 per cent capacity utilisation.

States like Uttar Pradesh, Goa, Madhya Pradesh, Haryana and Chattisgarh have declared the inauguration day a holiday. The Central government also announced a half-day closing till 2:30 pm for all offices and institutions on January 22. Globally, the Mauritian government has reportedly declared a two-hour break for Hindu public office workers, while the Indian community is expected to organise celebrations in various developed countries.