Business / Matchbox price increased for the first time in 14 years, to cost ₹2 from Dec

Zoom News : Oct 24, 2021, 06:04 PM
New Delhi: The All India Chamber of Matches in Sivakasi decided to increase the cost of matchboxes after 14 years, hiking the prices from Re 1 to ₹2. Citing rising costs and inflation, the matchbox industry announced the price hike from December 1.

The matchbox may have been the only item that is being used in daily life which did not see a price increase in the last 14 years. The price of the matchbox was last hiked in 2007 from 50p to Re 1. Earlier, the cost of matchbox was increased from 25p to 50p in 1995, according to reports.

The manufacturers of matchboxes highlighted that there are 14 items that are needed for making matchboxes. The price of a kilogram of red phosphorus, an important material required to make matchboxes, rose from ₹425 to ₹810, wax from ₹58 to ₹80, the outer box board from ₹36 to ₹55 and the inner box board from ₹32 to ₹58.

The manufacturers also said that the rising costs in acquiring items like paper, splints, potassium chlorate and sulphur have also led to the rise in the price of the matchbox. Secretary of the National Small Matchbox Manufacturers’ Association, VS Sethurathinam while speaking to the Times of India said that manufacturers have decided to increase the selling price from our units 60% to ₹430- ₹480 per bundle which is excluding the 12% GST levied on them.

Reports also highlighted that the manufacturers initially wanted to price a single unit at ₹1.50 but nixed the idea as shopkeepers would find it difficult to give back 50p change to customers.