Green cracker order has hit business: Sivakasi traders

MANUFACTURERS SAY 90% OF THE FIREWORKS IN THE COUNTRY ARE SUPPLIED FROM SIVAKASI AND THEY GENERATE ABOUT ~6,000 CRORE

ANNUAL REVENUE

CHENNAI: A four-month shutdown following the Supreme Court’s ban in October last year on using certain chemicals for the production of firecrackers has hit production and is likely to impact revenues for the second year in a row, manufacturers in the country’s fireworks’ production hub in Tamil Nadu’s Sivakasi say.

The confusion and delay in the certification for what a green cracker is as well as the stricter implementation of rules have also hurt the industry.

Tamil Nadu Fireworks and Amorces Manufacturers Association (TNFAMA) president P Ganesan said that they went on a strike from November 2018 to March 2019 after the Supreme Court banned barium nitrate, a major substance used to make 60% of crackers.

“It [strike] ended after we got green cracker formulations from the Council of Scientific and Industrial Research [CSIR] and the National Environment Engineering Research Institute [NEERI[...ON what constitutes a green cracker,’’ said Ganesan.

Green crackers are the ones which emits less pollution when compared with conventional crackers, and are without lithium, barium, lead, and arsenic. Sparklers, chakris, flowerpots are the only green crackers currently available in the market. About 30% of emissions can be reduced with the usage of green crackers, according to CSIR and NEERI.

Ganesan added that they have had just about 7-8 months to adapt to the new chemical formulations and limited time to produce the crackers for this Diwali season. He estimated that the production would be down by about 20% to 30% this year. Ganesan added that they have also been unable put special symbols in many cases specifying crackers that are green because of the lack of time.

Sanjeevi Kumar, a fireworks manufacturers, estimated the dip in their business to be nearly ~1,000 crore this year because of the insufficient time to produce green crackers.

The chief executive officer (CEO) of another company, who spoke on condition of anonymity, said Petroleum and Explosives Safety Organisation (PESO) has given the go ahead to only 28 manufacturers to make green crackers. Sivakasi has 1,078 registered firecracker manufacturing units, which employ around 800,000 people. Manufacturers say 90% of the fireworks in the country are supplied from Sivakasi and they generate about ~6,000 crore annual revenue.

The chief executive officer said that many units are reluctant in sending their products particularly to the National Capital Region (NCR).

“If any activist finds even something slightly wrong with our fireworks, it will be contempt of the court and have legal consequences.”

A bulk of Sivakasi crackers have traditionally been supplied to Mumbai, Ahmedabad, and Delhi. “About 30% of the total production was sold in the NCR .... , said another manufacturer.

Some manufacturers said there is also confusion among fireworks units as the PESO has not approved CSRI-NEERI formulations for green crackers.