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by: J.C. Tandon

MAP SHOWING MATCH PRODUCTION SITES IN INDIA

Wooden bout assembly in India is breach into three sectoral categories: the automatic all-embracing sector; the handmade small-scale sector; and the cottage sector. 82% of absolute bout assembly is in the handmade small-scale (67%) and cottage (15%) sectors, breadth technology has remained about simple. These two non-mechanized sectors of the bout industry are acclaimed primarily by achievement size. Officially, the cottage industry in bout authoritative is authentic as any chiral assembly assemblage abode beneath than 75,000 cases of bout boxes per year.

The industry as a able anon employs an estimated 250,000 people, with alone 6,000 of these in the automatic sector. The cottage sector, which involves absolutely chiral operations and produces beneath than 75 actor match sticks per year and is generally household-based, accounts for about 50,000 workers. Thus, small-scale, factory-based bout assembly units apply by far the bigger cardinal of bodies (195,000 workers) complex in the match sector.

As is the case with abounding FBSSEs the assembly of wooden matches is awful ill-fitted to handmade, household-based production. For every 6 workers active in the automatic sector, 22 can be active in the non-mechanized sector. Men, women, children, the aged and partially bedridden bodies can all be employed. Bout authoritative by duke is labour-intensive. It requires low levels of technology and about small basal investments. A cardinal of operations in the assembly action can be calmly undertaken at home. These factors acutely authenticate the significant socio-economic amount of small-scale bout production. Recognizing this, Indian government behavior acquire consistently advantaged the handmade sector. All future amplification of the bout industry is aloof for this sector, with particular accent on the cottage sector.

Only one assemblage represents the automatic sector, namely M/s Wimco Ltd. Wimco contributes about 18% of accustomed bout assembly with five factories anchored in Ambarnath (near Bombay, Maharashtra), Bareilly (Uttar Pradesh), Calcutta (West Bengal), Dhubri (Assam) and Madras (Tamil Nadu).

The strongholds of the small-scale, non-mechanized breadth are in the Ramanathapuram and Tirunelveli districts of Tamil Nadu in South India, breadth 67% of India’s matches are produced. These districts are in a very dry, unirrigated breadth breadth the rural citizenry has commonly been acutely poor. The cottage sector, amenable for the actual 15% of match assembly is broadcast all over the country in baby assembly units, although a ample admeasurement of these are additionally in South India.

The veneering and splint industry in the aing accompaniment of Kerala is an important accessory industry, accouterment about 90% of the copse used in Tamil Nadu. In Kerala there is a attitude of practicing acreage forestry on home breadth and about plantations. Acreage forestry is now actuality answer by the Accompaniment Backwoods Department.

The afterward case abstraction describes the development of the bout industry in southern India over the aftermost several decades. In accurate it highlights the furnishings of concerted government efforts to animate the small-scale sector. The abstraction additionally credibility out some important issues and constraints including a abiding curtailment of raw abstracts which abounding FBSSEs face the apple over.

Firsthand and accessory abstracts for the abstraction were fatigued from assorted sources in the states of Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Assorted commissions and institutes complex not alone in bout making but additionally in the cottage, baby and boilerplate industry sectors were consulted. Interviews of several entrepreneurs in the non-mechanized or alternate sector provided added advice on small-scale bout enterprises. Abstracts from Wimco, one of the oldest copse processing and professionally managed clandestine sector enterprises in India, contributed abundant of the advice acclimated in the analysis of the organized sector.

The agent of the assurance bout industry in India goes aback to the alpha of this century. About 1910 immigrant Japanese families who acclimatized in Calcutta began authoritative matches with simple hand- and power-operated machines. Local bodies anon abstruse the all-important abilities and a cardinal of small bout factories sprang up in and about Calcutta.

These baby bout factories could not accommodated the total requirements of the country however, and India began to acceptation matches from Sweden and Japan. During the Aboriginal Apple War, back Swedish matches could not be imported, the Indian bazaar was fed mainly by alien matches from Japan and by the locally fabricated ones which followed the Japanese arrangement alien in Calcutta.

After the war, factories in Calcutta were clumsy to compete with imports, and handmade bout assembly confused to southern India, abnormally in the Ramanathapuram and Tirunelveli districts of Tamil Nadu State. This about-face was due to the beat efforts of P. Iya Nadar and A. Shanmuga Nadar who went to Calcutta to apprentice the action from Purna Chandra Ray, a local businessman, who had abstruse the barter in Germany. The Nadars set up a cardinal of chiral bout assembly units in acutely poor regions of Tamil Nadu, breadth a aggregate of the dry climate, bargain labour and availability of raw materials from adjacent Kerala created ideal altitude for bout production. The first sulphur bout that would bum back brought into acquaintance with a asperous apparent was produced in South India in 1923, and the aboriginal assurance match, in the anatomy we know today, in 1932.

Mechanization came to the Indian bout industry in 1924 when M/s Wimco, Ltd. (Wimco), started operations in 1924 as a assemblage of the bunch Swedish Bout Company. Wimco is still the alone adumbrative of the ample calibration breadth in board bout accomplishment and is the alone fully automatic bout branch in the country.

During the able three decades, the Indian bout industry grew abnormally rapidly. Government behavior able Indian matches by placing careful tariffs on alien articles and accurately advantaged the expansion of the handmade, small-scale breadth through the use of cogwheel excise taxes. There are now 12,000 units in the small-scale, non-mechanized sector, of which 75% to 90% are anchored in Southern India.

Indian government behavior acquire played an important role in the development of the bout industry as a able and in the advance and aegis of the small-scale breadth for the aftermost fifty years. Protective tariffs, cogwheel community duties and sales tax absolution are some of the mechanisms acclimated by axial and accompaniment governments to advance the industry.

4.3.1 Careful Tariffs

Government abetment was aboriginal bidding 1922 through the artifice of a aerial amount (Rs. 1.50 per gross of boxes)8 of import tax on adopted matches. This tax was after accustomed as a careful assessment in 1928, and admiring a cardinal of new entrepreneurs, with both semi-mechanized and handmade factories, to the industry. Imports alone by 50% aural a bristles year period.

4.3.2 Cogwheel Community Duties

In 1934 community assignment was aboriginal levied on matches at a amount of Rs 1.50 per gross, as a acquirement admeasurement to atone for the abatement in the government’s assets through the community assessment in the deathwatch of the sharp abatement in imports. This was angled to Rs 3.00 per gross in 1940 and backward at that akin until 1942. During this 8-year period, the community assignment was uniformly activated to all manufacturers of matches.

In 1943 a aloft change in action was alien with the cogwheel community levy. The amount remained banausic at Rs 3.00 per gross for units abode over 100 gross per day while it was bargain to Rs 2.87 per gross for units abode beneath than 100 gross per day. Over the aing ten years further allocation resulted in 5 levels of assembly with accelerating concessions to abate units. In 1967 the abject for adverse was broadcast to include the admission of assembly as able-bodied as the aggregate produced. This accommodation further able the small-scale enterprises and charcoal as a basal axle of government behavior in the present. In 1979 an alike added affecting advance in community duties was mandated, adopting the duties of the automatic breadth and blurred those in the handmade sector. Best recently, assembly banned on the boilerplate and cottage sectors acquire been removed with an community assignment of Rs 3.50 per gross accustomed on both. The objectives of these decisions were to:

– admission employment, decidedly in rural areas;

– to abbreviate the appulse of bout amount increases to the consumer.

The cogwheel levies in force in 1981 and 1985 are illustrated in Table 4.1:

TABLE 4.1 Community Assignment Anatomy for a Box of 50 Sticks

(Rs. per gross bout box)

1981

1985

Wood

Cardboard

Wood and Cardboard

I MECHANIZED

7.20

6.60

5.85

II SEMI-MECHANIZED*

4.90

4.15

III HANDMADE

4.50

3.50**

Middle (below 100 actor boxes per annum)

Cottage/Tiny

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1.60

1.60

** As per latest regulations, if the hand-made breadth uses banal printed boxes, they ill acquire to pay Rs 4.15 per gross, i.e., the rate applicative to the semi-mechanized sector.

4.3.3 Accompaniment Sales Tax Exemption

Additional incentives to hand-made bout assembly units have been accustomed by accompaniment governments in the anatomy of sales tax exemptions.

4.3.4 Assembly Beam on Automatic Sector

To added assure that the hand-made breadth continues to aggrandize the axial government has arctic the accommodation of Wimco, the only all-embracing automatic bout producer, at 695,000 cases9 per annum.

4.3.5 Appulse of Government Policies

As a aftereffect of the action measures declared aloft the Indian bout industry boomed. Amid 1926-28 and 1949 the cardinal of factories added from 27 to 192. Back that time there has been a connected expansion of the hand-made breadth whose allotment of the bazaar has attempt up from 22% in 1949-50 to 50% in 1969-70 and now constitutes 82%. With Wimco’s production akin arctic and growing citizenry fueling an admission in appeal estimated at 6% per annum, the handmade breadth will acutely admission alike added in the future. The cottage breadth beneath the allocation of the Khadi Village & Industries Commission (KVIC) has been alleged to be the aloft advance breadth in the future.

The government is acquainted that the action of cogwheel excise levies acts as a absolute bridle for baby units to aggrandize their assembly and alike encourages some bigger units to go in for deliberate fragmentation. No satisfactory band-aid which would bang a antithesis amid the accustomed interests of the baby breadth and blockage of corruption of official action has been developed. There are a cardinal of bout producers who have burst their units to get the account of concessions, but at the aforementioned time there is a growing trend appear centralized buying of abounding abate units. In the two aloft southern bout centers, Shivakasi and Kovilpatti, 18 families, accustomed as the “Match Kings of India”, now advantage about 67% of the absolute bout assembly in the country.

Another aftereffect of government behavior has been to severely absolute the activities of Wimco in the automatic sector. The admission in excise duties initially proposed in 1979 represented seven times the company’s profits in 1977.

Safety matches bogus in the country are of the standard blazon with board appearance or agenda boxes and board splints, anniversary box absolute 50 splints. Added types of matches produced accommodate book matches absolute 10 to 20 sticks and fancy/ advertisement matches fabricated to the buyer’s specifications. Best of the raw abstracts are the aforementioned regardless of the akin of production, but the action is hardly altered in the automatic and hand-made sectors.

4.4.1 Raw Materials

The aloft raw abstracts acclimated in the assembly of safety matches are bendable dupe acclimated to accomplish the bout sticks (also accustomed as “splints”) and boxes, and chemicals for the bout active and the abrasion apparent of the boxes. With the barring of sulphur, all the basal raw abstracts are produced aural India. A abounding acknowledgment of the employment abeyant of the bout industry should additionally accede the workers complex in the assembly of all of these raw materials.

Both the abundance and affection of matchwood are determinants for affection products. Historically the Indian bout industry depended on alien copse including aspen (Populus tremula) from Sweden, Canada, America, and Russia; affection copse (Populus deltoides) from Canada; balsam poplar (Populus balsamifera) from Manchuria; and linden (Tilia japonica) from Japan. But the government bound confused to animate the use of aboriginal dupe by akin the acceptation of adopted poplars. One aftereffect of the aboriginal use of poplar copse has been that the customer continues to associate able affection matches with ablaze black wood, agreement added limitations on the alternative of aboriginal species.

Ailanthus malabarica, DC

A ample cardinal of Indian timberline breed acquire been begin suitable for use in the bout industry. Amid the best important Indian matchwoods are semul (Bombax ceiba, additionally accustomed as Indian cottonwood) which is able for boxes as able-bodied as splints, Indian aspen (Evodia roxburghiana) and white mutty (Ailanthus malabarica), both able for aerial affection splints. It is easier to acquisition able bout copse again box wood. While 29 breed acquire been articular as able for bout wood, alone a few are able for authoritative high affection boxes. Of these alone semul is commercially accessible on a sufficiently ample scale. But food of semul are actuality steadily depleted in animosity of government efforts to accession plantations. Semul requires a forty to fifty year circling to abound ample abundant to aftermath affection appearance which further exacerbates the accumulation problem. In response, a cardinal of acting dupe of poorer affection are actuality used, decidedly by the cottage sector. For instance, the copse of the elastic timberline (Hevea brazilensis) from plantations in Kerala is now actuality acclimated for boxes.

Wood food acquire acutely beneath in the aftermost 25 years, and the appeal for matches continues to grow. For one case (7,200 matches with 50 splints per box) of board matches about 0.25 CMH (cubic meter hoppus)10 (0.2 m3) of copse is required, of which 0.11 CMH (0.09 m3) is for the boxes and 0.14 CMH (0.11 m3) is used to accomplish the splints.

Recently prices of some added abstracts such as bout wax, potassium chlorate, potassium bichromate and dejected bout agenda acquire risen dramatically. The abrupt acceleration in the amount of potassium chlorate back 1979 from Rs 400 to Rs 1,200 per 50 kg illustrates this trend.

4.4.2 The Assembly Process

In automatic bout accomplish the absolute action of match authoritative takes abode beneath one roof from log to match. In the duke fabricated sector appearance for bout boxes and splints are produced separately. The actual stages are all done manually, generally as piecework at home and again accumulated or boxed at baby branch units. The technology of bout authoritative is about simple and involves a cardinal of stages, whether they are automatic or not:

ii. Box authoritative comes aing and is done both by apparatus as able-bodied as manually. In the hand-made breadth alien veneers are issued to workers either at the branch or at their homes forth with dejected bout paper cut to size. Tapioca flour-paste is acclimated to accumulate the alien boxes by hand. Although ante are currently beneath afterlight an boilerplate artisan can accomplish 40 to 50 gross boxes per day, at little added than @ 0.10 paise11 per gross. Close boxes are able the aforementioned way, usually by women, at home, with 35 gross a day at 0.15 paise per gross actuality an boilerplate worker’s production.

iv. Labelling and packing appear next, once the accessory painting dries. Workers booty the corrective boxes from the frames and affix labels and community stamps to them. The labelled boxes are again arranged into dozen packets and 12 dozen packets are arranged into a one gross box. Bristles gross boxes are fabricated into a array absolute 60 dozen bout boxes, and finally alien to market. Account paid workers acquire an boilerplate of Rs. 300 per month while allotment assignment labourers can acquire from Rs 4-8 per day depending on their level of production. Ante were beneath afterlight at the time of the research.

Handmade bout assembly technology has a audible bend over automatic accomplish in actuality able to acquire added kinds of timberline breed for splints as able-bodied as boxes. Also, actuality fabricated by hand, losses are negligible in this breadth compared to those in awful automatic automatic units. The handmade sector, with its low wages, is far added adjustable in accepting a added array of low ambit logs. The low acceleration case machines which are adequately labour-intensive admittance a greater abandon in the assimilation of non-standard copse breed for boxes as able-bodied as splints. Handmade box authoritative and bushing operations are slow, and although accomplishment of workers are low, these altitude accredit the handmade sector greater abandon to blot non-standard copse breed in bout manufacture. The handmade sector, further, is accurate by an accessory appearance and splint industry breadth the alternative of logs is primarily guided by the application of the end product. The affection of the matches produced out of these splints is able and can be consistently maintained. However, the rapidly declining availability and affection of copse has now additionally afflicted the handmade breadth which has been alleged aloft to booty over the arch role in the industry.

Rigorous standards of affection and assurance acquire been adopted by the Indian Standards Institution (ISI). Splints acclimated charge be of able affection so that they do not breach while striking. Bout active should burn without spurting and bout arch particles should not fly back the arch is addled against the abrasion apparent of the box. Matches should not t blaze beneath impact. Because of the adamant attributes of the standards, neither Wimco nor best of the “match kings” backpack the ISI arrangement on their matches.

4.4.3 The Splints and Appearance Industry

There are over 400 units, all in the small-scale sector, authoritative veneers and splints in southern India. 75% of these are in Kerala. This accessory small-scale industry employs over 15,000 bodies anon and indirectly. The estimated amount of appurtenances produced is about Rs 150 million. In actuality the adaptation and approaching advance of the handmade breadth of the bout industry in India depends aloft the success and connected ability of the appearance and splint producers. There is, however, little ability in the central government on the charge to accord abstruse and budgetary action abutment to this accessory industry.

The assembly of box appearance and splints is about simple and actual labour-intensive. All of the accouterment acclimated in the action is produced locally aural Kerala. A archetypal assemblage produces both splints as able-bodied as box veneers and runs from September to April/May, for about 200 canicule during the dry months. Appearance and splint enterprises are accustomed as small-scale industries by the government, and already they are registered, are advantaged to acquire a adapted allotment of bout copse annually from government forests.

Log peelers and saws acclimated in small-scale appearance and splint authoritative are small, assignment at apathetic speeds and acquire logs as baby as 8 cm circumference. After peeling, the splints and veneers are broiled for 8 to 10 hours in the accessible on adhesive platforms. The drying, packing and accumulator of the articles is done manually. Assignment is commonly abeyant during the cloudburst (May to September), although a few units acquire improvised semi-automatic dehydration chambers for splints, which can be accursed during the cloudburst with copse waste. Although Ailanthus malabarica is the best affection wood, at atomic 14 added species including elastic are broadly used, consistent in a ambit in the affection veneers and splints produced.

Per capita burning of matches in India added steadily from 2.45 sticks per capita in 1970 to 4.25 in 1985. There are advanced fluctuations in the anniversary advance amount in the burning of matches capricious from as low as 3% (before 1970) to as aerial as 28% (from 1977 to 1983). The ascent levels of assets in affiliation to which prices of matches acquire apparent arresting stability over the years, growing urbanization, abscess numbers of smokers, and changes in ammunition burning patterns announce that the approaching amount of advance could be college than the 6% as accurate by able trends.

Consumption of matches in 1977 was 1,965,138 cases (one case = 7,200 boxes). If this is taken as the abject and appeal is projected at 6% per annum, the estimated claim for matches in 1990 will be 4,191,663 cases.

It will be up to the three aloft layers of the bout industry: the automatic sector, the small-scale, hand-made, boilerplate akin sector, and the cottage breadth accommodated these demands. Anniversary breadth has adapted characteristics and constraints.

4.5.1 The Automatic Sector

The automatic breadth is alone represented by M/S Wimco Ltd. with bristles automatic factories and a civic arrangement of sales depots accouterment to over 1.5 actor retail outlets. Wimco is a collaborative assemblage of the bunch Swedish Bout Company. Swedish shares in the basal are 40% while the blow of the shares are endemic by over 39,000 Indian shareholders, including banking institutions answer by the Axial Government.

Wimco maintains amount adherence by backyard best retail prices on its matches and assures affection through standardization. In addition to bout production, Wimco has pioneered the accomplish of chlorates, paper, pulp, glue, and now, the adopting of fast growing poplars, adapted for the accomplish of affection matches, thereby eliminating abundant of their assurance on alien raw materials. Poplar agriculture is now accurate by nationalized banks and is accustomed to account about 10,000 farmers during the aing 10 years and thereafter 3,000 farmers every year.

Government action has, over the aftermost three decades, placed a beam on Wimco’s accommodation at 695,000 cases. Due to a cardinal of reasons, decidedly the curtailment of aerial affection barge bare by their accessories Wimco has rarely been able to aftermath 80% of this ceiling. Their bazaar allotment has gradually collapsed to 18% in 1984 although they pay 60% added in community taxes than the boilerplate akin handmade sector. Wimco has no affairs to appearance out of the match business about and has accustomed the beam set by the government as its bazaar allotment after sacrificing amount and quality.

Although awful automated, Wimco operations abide to be adequately labour-intensive and it is argued that they are far added wage-intensive than either of the handmade sectors. Workers’ balance in the mechanized breadth at Wimco boilerplate about Rs 35 per day. A 1980 analysis showed that wages constituted 16.5% of the gross sales in this sector. In the handmade breadth by adverse they were alone 5.5%.

Wimco continues to antechamber for lower community bodies and liberalized bendable copse acceptation quotas as it feels it is actuality unfairly taxed because the banned to its advance which acquire already been established.

4.5.2 The “Match Kings” of the Handmade Sector

The handmade bout industry as a able registered an increase in bazaar allotment from 50% in 1968 to 82% in 1984. Aural this breadth a ‘middle level’ of small-scale bout assembly units has emerged as the ascendant assembly centermost in the country. Amid in Tamil Nadu accompaniment this boilerplate akin is the artefact of the aboriginal factories amorphous actuality by the Nadar family. This breadth accounts for 67% of the bout bazaar and it continues to be bedeviled by 18 carefully accompanying families, generally referred to as the “Match Kings of South India”. These families anniversary own added than one branch and advantage a cardinal of cottage akin units through sub-contracting. They acquire a basal cartel over added than two-thirds of the bout industry. Table 4.1 lists the “match kings” and their corresponding assembly abstracts as of 1980.

The advantage of the “Match Kings” was acutely not the advised aftereffect of the axial government’s 1979 action introducing massive abatement in community duties to the cottage and small-scale sector. The allowances were advised to go to smaller-scale, village-level entrepreneurs and cooperatives registered with the KVIC. Although this continues to be the policy goal, it is now accessible that the aloft allowances and opportunities for future advance of the bout industry, abundant to the agitation of government action makers, will go to these 18 families.

Irrespective of the beneficiaries, this boilerplate breadth is a force to account with in the industry. It has helped the advance of ancillary industries for the accomplish of splints and veneers, potassium chlorate, and factories abode glue, and paper. This breadth additionally produces non-glowing choice matches, book or band matches and wax matches. It has taken the advance in adopting Indian Standards Blueprint for matches, and is aloof alpha to advance across markets.

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TABLE 4.2: Groups Abode Added Than 10,000 Cases (5 Lakh Gross) of Bout Boxes per Year (1980)

(1 case = 50 gross or 7,200 boxes)

S. No.

 

Name of Group

Production in 1980

Number of Factories

 

Gross

Cases

1.

Pioneer Group

70,90,750

1,41,815

17

2.

Arasan Group

42,49,200

84,984

25

3.

Aiya Nadar Group

34,39,750

68,795

17

4.

Sundaravel Group

27,45,350

54,007

10

5.

Hind/Standard Group

30,78,550

61,571

10

6.

Pope The King/East India Group

26,77,900

53,558

7

7.

New Jyothi Group

19,41,600

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38,832

5

8.

St. Joseph Group

16,07,500

32,150

6

9.

Neenakshi Group

15,36,300

30,726

3

10.

Comorin Group

14,85,350

29,707

5

11.

National Group

14,61,900

29,238

8

12.

Modem Group

13,28,150

26,563

3

13.

Jupiter Group

12,53,550

25,071

4

14.

Premier Group

8,61,900

17,238

6

15.

Anja Group

8,55,350

17,107

3

16.

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Kadiriya Group

8,15,950

16,319

3

17.

Coronation Group

6,36,900

12,738

5

18.

Everest Group

5,10,100

10,202

4

TOTAL

3,75,76,050

7,51,521

141

The middle-level hand-made breadth has helped the advance of accessory industries for the accomplish of splints and veneers, Potassium Chlorate, and factories abode glue, and paper. The small-scale breadth also produces non-glowing choice matches, book or band matches and wax matches. It has taken the advance in adopting Indian Standards Blueprint for matches, and is aloof alpha to advance across markets.

4.5.3 The Cottage Sector

The Khadi and Village Industries Commission (KVIC), a association endemic by the government, entered the account in 1977 to create opportunities for new entrepreneurs to set up small-scale bout units in rural areas of India. The absorbed of this accomplishment was to admission employment; reduce corruption by traders; balance the bazaar amount at a reasonable profit level; and accession the allowance levels of workers in both cottage and small-scale sectors of the non-mechanized units. Small-scale units acquire several distinct advantages. They may be household-based, are generally added able in their use of a advanced array of materials, aftermath beneath wastage, and administer allowances to a added labour pool.

Officially, cottage industries are those application manual assembly methods that aftermath beneath than 75,000 cases of matches per year. There are estimated to be over 10,000 cottage bout units, either beneath the KVIC or associated with it on a accommodating abject about the country. Sixty percent of these are in South India. The KVIC cottage bout industry affairs emphasizes technical, banking and business assistance. It endeavors to action a total abetment amalgamation from the aperture of the assemblage to the business of the completed matches.

Several aloft setbacks occurred in the “Rapid Expansion Programme” that the KVIC initiated. As a aftereffect low affection matches worth several actor Rupees were a absolute loss. Assembly levels fell dramatically and there were hundreds of cottage handmade units closed, lying idle, or running beneath capacity. The KVIC arrangement came beneath a abundant accord of accessible criticism. Another development in the cottage breadth that met with abortion was a planned accord amid the Maharashtra Khadi & Village Industries Board (MKVIB) and Wimco to set up 50 cottage calibration units in the state. Although planned in 1979 this action has still not been austere by government channels.

Despite these failures, the government has fabricated a commitment to the cottage breadth with the accompaniment cold that approaching amplification of the industry should be in the handmade sector, abnormally at the cottage level. Still convalescent from its beforehand setback, KVIC is anon affianced in reorganizing and restructuring its cottage bout action afore embarking upon any added abundant programmes. Some of the important apparatus of the new affairs include:

– creating an basement for administration of raw material and for business able matches;

– artefact about-face to accommodate “fancy” matches;

– development of adapted technologies for ancestors box authoritative and anatomy filling.

The Indian bout industry is a active FBSSE which has succeeded in accretion at a about small-scale, hand-made, and labour-intensive level. There are, however, a cardinal of important issues and aloft constraints that accost the industry. These include:

– bounded administration of the industry in one arena and consistent labour shortages;

– the cartel of the 18 “Match Kings”;

– corruption of women and adolescent labour by these monopolists;

– the abortion of the cottage sector;

– the accession of new technology in the duke made sector;

– and the altered problems of the appearance and splint making industry.

4.6.1 Curtailment of Matchwood

The accretion appeal for matches accompanying with crumbling wood assets is the aloft bottle-neck faced by the absolute bout industry in India, including the accessory splint and appearance industry in Kerala. In adjustment to meet the appeal for matches of 3.51 actor cases in 1990, projected by the Development Committee on Matchwood in 1979, the absolute matchwood adapted would be 879,000 CMH (692,000 m3). At that time the appraisal of total matchwood accessible was 500,000 CMH (394,000 m3). Although estimates of availability are capricious it is ambiguous whether abundant increases have been made. In actuality the government has projected a arrears of 900,000 m3 in the year 2000. Appearance affection copse for bout boxes, which accounts for 44% of matchwood used, is in decidedly abbreviate supply. Through action decisions the government has additionally aloft the ability on copse abounding times over. There has been a basal clutter to booty whatever copse and accessible splints are accessible amid the automatic and the handmade sectors.

There are a cardinal of affidavit answer the analytical shortage of able matchwood in India. These include:

ii. The submersion of backwoods areas abode matchwood beneath hydro-electric reservoirs, and bright felling for irrigation canals;

iii. Conversion of ample chunks of backwoods acreage bearing matchwood for resettlement and accompaniment farms, army cantonments and other development activities;

iv. Abortion of accustomed about-face of the main matchwood species, semul.

v. Abridgement of able disposed of absolute matchwood plantations;

vi. Competing claims for matchwood from added soft wood-based industries like tea plywood, packaging, pencils and shoe heel.

Geographical factors acquire played an important allotment in wood shortages for the bout industry. About 82% of the absolute assembly of matches in the handmade breadth is amid in Tamil Nadu in areas with basal forest resources. Copse has had to be transported from out of state. Fortunately there is a advancing appearance and splint industry in adjoining Kerala, breadth over 400 processing units accumulation about 90% of the copse acclimated in Tamil Nadu. However, Kerala is additionally experiencing growing balk shortages. Copse shortages in the breadth of the Wimco at Bareilly and Bombay acquire resulted in busline of banal splints from the Andaman Islands, over 2,000 kilometers away, involving sea, abuse and alley biking and incurring abundant losses and delays. Other basal raw abstracts are chemicals and added abstracts for bout arch composition which are additionally acceptable deficient and aerial priced all over India.

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4.6.2 Shortages and Aerial Prices of Chemicals

Despite assembly of 12,000 bags of potassium chlorate a year aural the country there is still a curtailment of this actinic compound. The abrupt acceleration in prices back 1979 (from Rs 400 to Rs 1,200 per 50 kg) is abhorrent on the curtailment of ability which is bare for the assembly of the chemical. To cope with the problem, the manufacturers lower the affection of the matches by abbreviation the assigned abundance of the actinic blueprint for the bout head, thereby affecting the consumer.

All the added chemicals bare by the industry acquire either become attenuate or big-ticket during the able ten years as well, consistent in growing shortages of these abstracts for the baby and non-mechanized bout making units.

4.6.3 Bounded Absorption and Labour Shortages

As mentioned aloft 82% of India’s bout assembly is amid in south India in one bounded region. This not alone serves as a cesspool on adjoining copse assets but carries with it added problems of busline and distribution. Until afresh labour was abounding in the region, in actuality the abiding accumulation of acutely bargain labour was one of the aloft affidavit why the industry grew in the area. The labour blueprint is changing in the acceptable areas of Shivakasi, Sattur and Kovilpatti where, in addition to handmade matches, India’s bigger fireworks and press industries are now located. There is now an astute curtailment of accessible manpower in the acceptable bout authoritative areas. Because of the labour shortage, abounding units in these areas are clumsy to advance their installed capacities fully. In some cases, assembly levels are as low as 40% of capacity.

4.6.4 The Cartel of the 18 “Match Kings”

The actuality that 18 families currently advantage 67% of India’s bout production, alike admitting their operating units are alone appointed as small-scale, is absolutely at allowance with the government’s admiration to see the bout industry abide as decentralized as accessible in adjustment to administer assets and application to the atomic groups in society.

4.6.5 Corruption of Women and Child Labourers

Linked to the advantage of the industry by the 18 “Match Kings” and its breadth in a actual bankrupt allotment of the country are allegations that women and accouchement are actuality exploited, paid low wages, provided poor alive altitude and accustomed few benefits. While the industry has absolutely been economically benign to the region, and actual few cases of labour agitation acquire been reported, the low-wage anatomy in the handmade sector enables it to accomplish its artefact at lower cost, at the amount of child labour, advantageous adolescent workers alone Rs 3 or Rs 4 per 10-hour day (c. Rs 80-110 per month) with no binding benefits. In the boilerplate akin breadth a ample cardinal of accouchement beneath the age of 10 are employed, in animosity of the civic minimum age of 14.

This botheration extends to the cottage breadth breadth the aggregate of the labour force in KVIC bout units is fabricated up of changeable workers in the 15-20 age group. Here, the prevailing allowance amount is Rs 4 to Rs 7 per day (c. Rs 110 - 190 per month) depending on output. In contrast, circadian balance in the automatic breadth at Wimco boilerplate Rs 35. This is an acutely important issue. All too generally in low value-added FBSSEs women and their ancestors associates are relegated to the everyman rung on the assets ladder. This is partly a aftereffect of the piece-work system, whereby families are paid by the cardinal of boxes fabricated in their homes, and so the absolute ancestors is put to work.12

(*) Civic Institute of Rural Development, Department of Agriculture, Government of India. Rural Development Statistics 1989. Rajendranagar, Hyderabad, India, 1990.

4.6.6 The Abortion of the Cottage Sector

In animosity of a full-fledged, government adjourned program, the KVIC sponsored cottage breadth has been clumsy to apprehend its abeyant as a aloft contributor to the bout market. Poor alertness resulted in the administration of funds afore the adapted basement was in place. This resulted in the acceptance of grants to abounding new units, generally in non-traditional areas breadth raw abstracts were deficient and training unavailable. New factories were generally started in clashing alive spaces, generally sheds in home courtyards, with bereft accumulator accessories for raw abstracts and able products. Inferior breed of copse and poor affection chemicals were generally activated and there was no arrangement of affection control. Funds and materials were absent and misused. This abortion raises questions about the charge for bigger planning, for the development of basement and training. But it also raises the affair of size. How baby is too small? Back is baby bigger to ample or carnality versa?

4.6.7 Changes in Technology

The barter of board bout boxes by cardboard, pioneered by Wimco, has alien a audible abstruse and actual advance in the industry. But forth with this change, a amount of semi-mechanization of operations has additionally been introduced. Agenda skillets acclimated mainly for accomplishment alien box bout accomplish are printed in central, automated press machines and are purchased by baby bout manufacturers. This accession has artlessly resulted in blurred the application rate, abundant against the planned abstraction of announcement employment-oriented technologies.

4.6.8 Added Constraints of the Ancillary Industries

In accession to raw actual shortages the accessory appearance and splint industry faces a cardinal of constraints including:

Excellent specimens of white poplar trees

Possible solutions to the accumulation problems include:

4.7.1 Barter of Board Matchboxes with Cardboard

As abundant as 44% of all the copse acclimated in bout assembly goes into the assembly of matchboxes. By substituting agenda boxes a major abridgement in copse appliance could be able immediately. Cardboard assembly itself requires coarse raw actual but there is a far added choice of breed from fast growing copse like eucalyptus to bamboos, grasses and agronomical residues. Wimco has adapted 70% of its box assembly to agenda in four out of bristles plants. To be absolutely effective, about cardboard barter charge be broadly adopted by the small-scale sector.

Currently the aloft botheration with barter by cardboard boxes is the about aerial amount of cardboard, at Rs 400 per case. This amount is partially account by community rebates accustomed for cardboard. Another hidden cost lies in the likelihood that switching to agenda box authoritative will absorb more mechanization and accordingly advance to a abridgement in application levels. The real amount of agenda barter lies in the abeyant it holds for saving matchwood. According to projections by Wimco and the KVIC (1979) 500,000 m3 of matchwood could potentially be adored in the year 2000 by substituting agenda for all board boxes.

4.7.2 Barter of Board Matches with Wax Matches

Another admission to the raw actual botheration is to substitute wax instead of copse for the bout splints themselves. A advance in this direction has been taken by Wimco and several baby units are additionally abode wax matches now. The splints are fabricated from a adapted blazon of wax paper. The assembly of wax matches has so far remained belted due to the aerial amount of wax paper, about Rs 20,000 per ton at present, and the actual aerial ad valorem community on wax agenda of 31.5%. If copse shortages abide to be as astringent as projected, the botheration can be partially apparent through government rebates in community levied on wax agenda to animate the assembly of wax matches. Wax is, however, a petroleum by artefact and it is absurd to become readily accessible in acceptable quantities to alter copse in bout splints.

4.7.3 Conservation of Accessible Copse Assets and Added Imports

The bout industry, which is endemic by the clandestine breadth is at the benevolence of government endemic copse supplies. The industry would like to see all able bendable dupe aloof alone for bout production, It would also account from added admission to alien lumber.

4.7.4 About-face Through Plantations and Agroforestry

Even if all of the aitionist measures to break the matchwood shortages mentioned aloft are implemented by the government and the industry, the alone abiding band-aid to the matchwood curtailment lies in regenerating the copse and maximizing balk production. This can be able by the government and clandestine timberline farmers through added accelerated administration of absolute plantations of softwood copse like semul. Widespread acceptance of tree farming, decidedly of abbreviate circling breed able for matchwood such as amalgam poplars in arctic India and Ailanthus malabarica in South India should additionally be promoted.

Due in allotment to the abundant success of poplar agriculture in Pakistan, which is now cocky acceptable in bout production, there is increasing action and ample abeyant in clandestine matchwood assembly through agro-forestry. In arctic India, breadth there has been a attitude of poplar growing, abnormally in Kashmir, Wimco has pioneered timberline agriculture of poplar woodlots and inter-cropping of poplar with banknote crops like turmeric. Poplars will abound aloft 28° breadth in arctic India and do decidedly able-bodied under optimum clay altitude with irrigation back developed in bunched plantations. There are several breed of poplars aboriginal to the Indian Himalayas including Populus euphratica, and abounding accessory and amalgam poplars were alien over the aftermost 50 years.

Through their subsidiary, Wimco Seedlings Ltd. based in Uttar Pradesh, Wimco has developed a fast growing amalgam carbon of Populus deltoides which is supplied to farmers as allotment of a complete extension package, affiliated to loans from government banks. A affirmed buy-back price assures the agriculturalist of a bazaar already the poplars acquire accomplished bankable size. Beneath able altitude a advantageous amalgam poplar can aftermath 0.3 m3 of matchwood over a 10 year rotation. Wimco calculates that by annually planting 1.3 actor trees, eventually accoutrement 75,000 ha, a abiding crop of 380,000 m3 could be obtained, abundant to atone for the estimated arrears of matchwood projected in 1990.

Similar schemes charge to be undertaken by the small-scale sector, and the government, decidedly in Kerala breadth the copse and veneer industry is alpha to ache from copse shortages. “White mutty” breed like Ailanthus malabarica and Alstonia scholaris are already actuality developed in Kerala and are able for more accelerated timberline farming, as they can be harvested in 8-10 year rotations. Improved forestry extension, possibly including the KVIC, needs to accomplish high affection seedlings and advice readily accessible to timberline farmers. Some new efforts to absorb semul into agroforestry systems13 may also accommodate achievement at a cottage industry level.

Some accompaniment government amusing forestry programs are already adventure matchwood assembly on a bound scale, by including breed like poplars and Ailanthus malabarica in their seedling distribution.

4.7.5 Institutional Abutment to the Ancillary Industry

Given some of the constraints adverse the appearance and splint industry it is all-important to ensure that adapted institutional abutment is accustomed to advice ensure abiding electric supply, advance training programs, undertake analytical analysis on appliance of new breed and develop business assistance. As KVIC has been articular as the aloft governmental bureau amenable for the approaching advance of the bout industry it should attempt to abode these issues.

4.7.6 100% Business by KVIC

KVIC anon procures 45% of the assembly of the handmade bout factories beneath its ambit and leaves 55% to the assemblage to bazaar at its own discretion. It is recommended that KVIC annex 100% of the assembly to bazaar and leave the assemblage to apply on assembly only. By accomplishing so, the assemblage will be able to put a beyond abundance to bazaar and the customer will be benefitted by advantageous lower prices. In adjustment to do this, the KVIC may charge more costs from the Axial Government.

4.7.7 Advance of Industry’s Advance to Other Regions

If labour curtailment is a botheration in Tamil Nadu now, there is no acumen why the industry cannot be developed in added genitalia of the country. This way, the allowances of application bearing be aggregate by altered genitalia of the country. Also, the present absorption of the industry in the South makes the ceaseless accumulation of raw abstracts aing to absurd and exacerbates the astute absence of balk in the area. By announcement the small-scale match industry in added genitalia of the country, the use of raw abstracts and other chemicals in added states becomes possible. KVIC has affairs for announcement the bounded advance of the bout industry. It has boarded on a affairs for training -to-be able labour, accouterment incentives to abet advancement amid the accomplished workers, and accretion the ambitious abject of the industry to animate the clearing of matchwood industry units.

4.7.8 Sectoral Action Clarification

The government needs to analyze its behavior with attention to the three audible sectors of the industry. Anniversary breadth is acutely absorbed in attention its own interests, decidedly in appearance of the substantial differentials in community assignment levied adjoin the automatic and hand-made sectors. There may be some account to behavior which animate the simultaneous and commutual development of all three sectors. Such behavior acquire already been alien in the textiles, computers and electronics industries.

In the case of the bout industry, the astounding advance of the small-scale breadth may be abundantly due to the cogwheel community levies which acquire acted as a disincentives for baby units to aggrandize their production and alike encouraged some of the bigger units to go for advised fragmentation to get the account of bargain levies. What makes baby bigger than large? Should baby units always advance into beyond ones over time? Recent cause of budgetary incentives to the small-scale breadth by putting middle akin and cottage units at the aforementioned community akin seems to announce a trend in this direction. While able measures charge be taken to animate the ability of baby units, a amount of aegis for the closing may acquire to be connected for some time to advice them affected any bogus disadvantages from which they may be suffering. The abiding cold charge be to advance an chip admission to the development of the small-scale and large-scale sectors so as to advance their accumulated bread-and-er achievement and ensure the bigger accessible account to the greatest cardinal of people.

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