Lackluster Diwali: Firecracker prices increase by 40% in Andhra

Visakhapatnam: Ahead of Diwali, prices of popular firecrackers have increased by 30 to 40 percent in Andhra Pradesh.

Traders attributed the price hike to the closure of firecracker units in Sivakasi of Tamil Nadu and the increase in the manufacturing costs of green crackers.

"This year we have only 60 to 70 percent of the stock as compared to last year. Wholesale traders supplied fewer crackers to retailers owing to the shortage of supply," said Munna Patel, one of the retailers in Vizag city.

Prices of some popular firecrackers have gone up by over 40 percent this year. There are no new varieties of firecrackers this year. Traders say it is due to the transition to green crackers.

"Prices of flowerpots, sky-shots, sparklers, Chakkars, Pencils, and few other kids' fancy items has risen over 40 to 50 percent, said Tagore Nadh," a retailer in Vizag city.

Some of the varieties including 1,000 wala and 2,000 wala which are in high demand, may not be available in the market this year. "Dealers are not in a position to supply the goods. We have deposited Rs12 lakh for the procurement of the firecrackers. We got only Rs 8 lakh worth of stock from the dealer," said the retailer traders.

Green crackers contain nitrate, while regular firecrackers use barium salts. "The shortage of nitrate has hit the manufacturing units resulting in limited supply and cost escalation," traders said.

"I purchased crackers for Rs 6000 Diwali last year. Even shops that claim to sell at wholesale price, are charging heavily. The price hike has upset our budget," said G Srinivas, a private employee in Vizag city.

In Vizag city, temporary firecracker stalls will be arranged at Andhra University's engineering college ground, exhibition ground, and a few other open places from October 22.

KEY POINTS

Over 300 firecracker retail stalls come up at Andhra University's grounds from October 22.

The price of flowerpots increased to Rs 450 from Rs 250

Each trader invested Rs 3 to Rs 6 lakh. Some traders invested Rs 10 lakh too procure crackers.

The traders are expecting brisk business despite the high prices of crackers.

The number of retail stalls in Vizag city has been declining.