Smuggled Chinese lighters smother match industry
With cigar lighters, mostly illegally imported from China, continuing to smother the match industry despite a ban on them, the match manufacturing units of Kovilpatti are staring at an uncertain future.
The match industry, having 700 units in Kovilpatti and Sattur in Virudhunagar district and in Tenkasi district, produce nine crore matchboxes every day by employing two lakh workers, mostly women, directly and another one lakh workers indirectly. Vellore and Krishnagiri districts also house a few match units.
When the Chinese goods started ¡ooding the Indian market, the cigarette lighters were also imported to be sold in the domestic market.
“After the body of the lighters were imported from China, the fuel is lled in India after paying the taxes payable to the Centre. In other words, the manufacturer will have to pay ₹9.80 per lighter as tax to the government and consequently, each lighter will cost more than ₹25 when it reaches the consumer. To avoid this, the body of the Chinese-made lighters is being smuggled into India via Nepal with the connivance of o¤cials and hence no tax is being paid to the government. After the fuel is lled in these lighters, they are sent to the markets across the country to be sold illegally at ₹10 apiece to virtually kill the domestic matches industry,” M. Paramasivam, president, National Small Match Manufacturers Association, Kovilpatti, told The Hindu on Tuesday.
Following repeated representations from the owners of match units of Kovilpatti, Sattur and Tenkasi, the Centre imposed a ban on the lighters costing ₹20 and below.
“However, the Chinesemade lighters, costing ₹8 or ₹10, continue to ¡ood the Indian market. Even though the Centre is fully aware of the people smuggling this banned product into India, no action is taken against them as they are from Gujarat. These smugglers cause a loss of over ₹12,000 crore annually to the government exchequer,” Mr. Paramasivam said.
The pressure exerted by the manufacturers through repeated petitions forced the o¤cials to crack the whip against the smugglers on a couple of occasions when over ₹100 croreworth illegally imported Chinese lighters were seized.
“But this action did not continue,” said Selvamohan, another match unit owner from Kovilpatti.
Condemning the unhindered availability of illegally smuggled cigar lighters in Indian markets, the matches manufacturing units here started a strike from April 13.
“Even as we are paying all taxes to the governments, the illegally imported lighters cause huge loss to the country. And, domestic matches manufacturers cannot pay the amount for the raw materials we purchase due to stagnation of match bundles caused by the smuggled lighters. Hence, we, in a bid to attract the Centre’s attention, have commenced the strike. Even though we’ve decided to reopen our units on April 22, it may get extended if the Centre does not take any decision on our appeal,” Mr. Paramasivam added.