From firecrackers to green crackers: How rules changed festive supply chain

India's fireworks economy has undergone a significant transformation over the years, shaped by stringent pollution regulations and local bans

The Supreme Court's October 15 verdict, allowing the regulated sale and use of green crackers in Delhi and the National Capital Region (NCR), has once again sparked hope for India's fireworks industry.

 

The court's order also marked a significant shift in the approach to managing the problem of pollution, which aggravates every year in Delhi-NCR around Diwali.

 

Pollution regulations and their impact on firecrackers use

 

India's fireworks economy has undergone a major transformation over the years, shaped by stringent pollution regulations and local bans. What was once an industry defined by the unrestricted use of traditional firecrackers has now evolved into a tightly regulated sector, where only certified green crackers can be produced and used within specific time frames set by the Supreme Court.

 

Traditional firecrackers have been a major source of particulate matter (PM 2.5), sulfur dioxide, and other harmful emissions that push pollution to dangerously high levels.

 

The apex court's verdict permitting green crackers in Delhi-NCR came on the day when air quality in the national capital was 25 to 30 times worse than the safe limits recommended by the World Health Organization (WHO), with PM2.5 levels exceeding 400 in some places.

 

The traditional spectacle of firecrackers, especially around Diwali, is now changing with the rise of eco-friendly or green crackers and reshaping the supply chain and labour dynamics. 

 

Impact on Sivakasi's production and employment

 

In 2017, the Supreme Court banned the use of antimony, lithium, mercury, arsenic, lead, and strontium nitrate in firecrackers. A year later, the apex court only allowed the use of "green crackers", a decision that impacted those working in Tamil Nadu's Sivakasi town the most.

 

Known as the country's fireworks capital, Sivakasi manufactures nearly 90 per cent of the firecrackers sold nationwide, Deccan Herald reported.

 

The firecracker industry in India is worth ₹6,000 crore and has over 8,000 registered factories, employing more than 300,000 people directly. Indirect employment extends to 500,000, Business Standard reported. As of 2021, there were 1,070 manufacturing units in and around Sivakasi, according to data from the Tamil Nadu Fireworks Amorces Manufacturers’ Association (Tanfama). The association claims that the size of the industry prior to Covid-19 was ₹3,000 crore in 2019-2020.

 

The apex court's ban on chemicals like barium nitrate in 2018 significantly reduced the production of traditional firecrackers, forcing many producers to go out of business. According to a 2022 Hindustan Times report, Velavan Fireworks, a factory in Sivakasi, previously had 150 workers until 2020. However, in 2022, it was somewhere between 50 and 70.

 

The ban and the subsequent chemical restriction resulted in job losses for nearly 150,000 people in 2022, a report suggested. 

 

Rise of green crackers

 

After the Supreme Court allowed the use of 'green crackers', Sivakasi manufacturers protested against the order for nearly six months in 2018, before giving up and resuming production in May 2019, The Economic Times reported. After the factories reopened, workers were trained in batches to make green crackers. However, these factories soon witnessed a shortage of workers, since many migrated to other places during the strike.

 

R Balaji, owner of Sri Balaji Fire Works Industries, Sivakasi, told The Economic Times that the transition to green crackers has been easier since it involved merely adding additives to the already existing formula.

 

Green crackers are low-emission alternatives to traditional firecrackers, developed by the Council of Scientific and Industrial Research – National Environmental Engineering Research Institute (CSIR-NEERI). Reports suggest that these green crackers emit 30-40 per cent less particulate matter and sulfur dioxide than conventional crackers while maintaining similar visual and sound effects.

 

A Deccan Herald report suggests that though the initial transition to green crackers was slow, the industry is now focused on exclusively producing green crackers and is prepared to increase production. 

 

With the Supreme Court lifting the ban on sale and use of green crackers in the national capital, P Ganesan, president of the Tamil Nadu Fireworks and Amorces Manufacturers’ Association (TANFAMA), hailed the ruling and said, "Allowing the bursting of green crackers in Delhi NCR will provide a much-needed boost to manufacturers and create additional jobs for lakhs of workers. The NCR alone accounts for nearly 15 per cent of India’s fireworks market."

 

While the green crackers do emit 30-40 per cent less particulate matter, experts believe that they are not a solution in themselves. Experts have suggested that a small reduction in the air pollution that the green crackers create will not make a significant difference, especially if these crackers are widely available.