Fireworks sellers fear losses

TNN | Updated: Oct 17, 2017, 00:04 IST


CHENNAI: With just a day left for Diwali and the rain pounding the city, there were not many takers for fireworks at the 60 shops at Island Ground. Some retailers resorted to distress sale on Monday to get rid of the stocks.

"The rain has affected our business. We paid Rs 2.5 lakh for 12 days and are worried whether we would be able to recover our investment if it continues to rain on Tuesday. Some of the shopkeepers are offering 50% discount to sell off the stock," said M Eshwara Pandian, a seller.

Traders said a thin crowd visited the ground on Monday and bought a minimum amount of firecrackers.

"The introduction of 28% GST on firecrackers is a bit too much. Prices of other items have also gone up so I had to cut down on my expense on fireworks. Since the children insisted, I bought firecrackers for Rs 3, 000 unlike last year when I could spend more than Rs 5, 000," said M Kumaravel, a buyer.

"The annual turnover of the cracker business is around Rs 4, 000 crore but the introduction of 28% GST has sent our business tumbling. This year, none of us will be able to make profits and if we recover our investment that would be a great thing," said K Sabapathy, a wholesaler from Sivakasi. He said firecracker sellers who have set up shops at Island Ground would not be affected much but those who buy in wholesale and sell in retail would be.

The heavy rain on Monday evening made life difficult for buyers who went to the Island Ground. Traders said they hoped that the rain would subside on Tuesday. "If it rains then our entire business and investment would go for a toss. We hope to see more people coming in to buy firecrackers a day before Diwali," said M Natarajan, another shop owner.