Anti-cracker campaigns at schools result in 25% decline in crackers demand this Diwali: Survey

ENARADA, Bangalore, October 31, 2013:

Owing to successful anti-crackers campaign launched by school authorities about hazardous effects of firecrackers on health and environment has led to a fall of 20-25 per cent in its sales this Diwali, according to survey.

“Many schools across urban India have taken an oath from their students during the morning assembly prayers to discourage children from bursting crackers and enjoy a safe and an eco-friendly Diwali thereby doing their bit to save the planet,” according to a quick survey conducted by The ASSOCHAM Social Development Foundation (ASDF) during over past 25 days.

“Though, there has been a general rise of 10-15 per cent in crackers’ prices, the decline in their demand is being majorly attributed to growing awareness amid children who have vowed to abide by their oaths to shun firecrackers,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s survey.

The ASDF team interacted with about 150 schools and over 1,000 schoolchildren at 15 prominent cities of Ahmedabad, Bangalore, Bhopal, Chandigarh, Chennai, Delhi, Hyderabad, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai, Patna, Pune and Surat with a view to ascertain as to how schools are playing a significant role in discouraging kids against bursting firecrackers that are grossly unsafe and pollute the overall environment. The survey was conducted during October 1-October 30.

Almost all the school authorities said they are carrying out various activities and campaigns to educate and explain to the kids about how bursting crackers is harmful and its ill-effects on health and environment through pictures and visuals, highlighted the ASSOCHAM survey.

Majority of the schools said they have conducted ‘oath ceremonies’ during the morning assembly prayers to dissuade children from using firecrackers in school premises and even while celebrating the festival at home.

The ASSOCHAM team also interacted with about 200 traders, retail and wholesale firecrackers’ dealers to ascertain the market scenario at the aforesaid locations.

Majority of wholesale and retail merchants said that steep rise in crackers’ cost is the primary reason that is keeping the buyers away as many enthusiasts have slashed their budgets and this has lead to a lull in the business as sales have declined by about 25 per cent year-on-year.

“Crackers is the least important thing on the to-buy list of customers, besides the rising inflation has left lesser money in their hands to buy other important household stuff,” said Mr Rawat. “Poor supply due to strict enforcement of fire safety regulations, input price inflation, unabated rise in fuel prices leading to escalating transport charges, labour shortage, rising wages and other such multiple factors are hurting the growth prospects of firecracker industry.”

Growing environmental awareness and restrictions by the local administration together with strict licensing norms are other key factors that have collectively led to a gradual slump in demand-sale of firecrackers during Diwali over the years, complained many traders while responding to the ASSOCHAM survey.

“There has been considerable increase of at least about 15 per cent year-on-year in the cost of crackers across all varieties, besides, many traders even said if such a downtrend continues they would quit the business from next year, in fact many people have quit this seasonal activity because of constant slowdown in the business,” said many shopkeepers and repined that it no longer remained a lucrative business proposition.

Most of the retailers operating throughout the year in this trade said they rely mostly on wedding season and other auspicious occasion to recover their investments.

Illegal imports of firecrackers from China are further hurting the profit margins of the industry as they are eating into their share of revenue.

The domestic firecracker industry which as per estimates is worth over Rs 1,500 crore has been constantly grappling for a few years now. The town of Sivakasi in Tamil Nadu is accounts for over 90 per cent of fireworks production in India with over 9,000 units in both organized and unorganized sectors.