Sivakasi firework units shut down as funds dry up

CHENNAI: Sivakasi, India’ s fireworks manufacturing hub, faces a bust as an attempt to clean up the country’ s toxic air choked the working capital of hundreds of units in the Tamil Nadu town.

The town, which earned the sobriquet ‘kutti Japan’ (mini Japan) for its manufacturing activities, produces 85% of the country’ s fire crackers, providing livelihood to an estimated over eight lakh people.

The Tamil Nadu Fireworks and Amorces Manufacturers Association( TAN FA MA) said no dealer is paying advances after a petition was filed in the Supreme Court seeking a country wide ban on firecrackers sale, striking a body blow to the industry that depends on advance payments for working capital.

TAN FA MA declared an in definite shutdown of fireworks manufacturing units from December 26. A decision was taken at a meeting on Friday as “things have gone from bad to worse.”

The trade practice here for the past 80 years is that the dealers send advance payments after Diwali, which meets 90% of the working capital requirement of the 820 odd units based in the town. The remaining 10% is met from own funds and bank loans.

TAN FA MA secretary KM ariappan told HT that in view of the petition, dealers have stopped making advance payments fear- in gan“adverse” judgment, making it impossible for manufacturers to run businesses. To chalk out its course of action, TANFA MA is hosting a meeting of All India Federation of Fireworks Associations on December 28 in Sivakasi . “We are tired of fighting … look forward to you for your help and support ... in having a historical win against the enemies of Diwali and Fireworks ,” the TAN F AM A’ s invitation to A IF A members reads .“We are tired and can not fight the battle on our own ,” Maria pp an told HT. He dismissed the environmental concerns associated with bursting of crackers, stating that even long afterD iwali, Delhi was engulfed in smog created by atmospheric pollutants.