Directive On Paraffin Wax Quota Threatens Assam Candle Industry

The Union petroleum ministrys circular directing Indian Oil Corporations Assam oil division not to release the subsidised quota of paraffin wax to candle manufacturing units registered after June 30, 1986 has evoked widespread criticism.

Several small scale units which have come up in the past decade face closure following the directive. The Assam Candle Manufacturers Association, representing about 400 units, has alleged a conspiracy on the part of the petroleum and natural gas ministry to crush the fledgling candle industry in Assam.

In a memorandum to the Assam industries minister, the candle makers association has sought his immediate intervention to revoke the order. The association said the circular was surprising, especially as it came at a time when the United Front government was making a concerted bid to upgrade the north eastern economy.

 

The small entrepreneurs felt the petroleum and natural gas ministry should have made special consideration for Assam as the state is the only producer of high grade paraffin wax, which is used in making candles., in the country.

The order is discriminatory and will only benefit a section of the units registered before the cut-off date to make use of the subsidy, the memorandum stated.

It was after the assumption of power by the Assam Gana Parishad government in 1985 that a large number of candle manufacturing units came up under the SSI scheme. This was because candle manufacturing did not involve heavy investment or complicated technology and attracted self employment.

The association further pointed out that out of 50,000 mt of high grade paraffin wax produced at the Digboi Refinery in Assam the petroleum ministry distributes the amount to different states leaving Assam with a mere 3,200 mt.

The association is of the view that the entire amount should be kept within the state which will enable the candle industry to export the finished product to other states and thus enhance the economic condition of the people of the region.