Workers making firecracker boxes at a manufacturing unit, in Sivakasi. | Photo Credit: VELANKANNI RAJ B

Fireworks manufacturers in Sivakasi, which accounts for nearly 90 per cent of India’s cracker production, faced a difficult season this year, with rising raw material costs, labour shortages, unseasonal rains and delays in the Supreme Court’s ruling on green crackers combining to dent production, said multiple sources in Sivakasi.

The cost of manufacturing fireworks has increased 15-25 per cent this year, driven by higher prices of key raw materials, including aluminium powder and colour-producing salts. Several smaller manufacturing units, unable to withstand the rising costs, have shut down over the past year, sources add.

The small town of Sivakasi in southern Tamil Nadu produces nearly 90 per cent of the country’s fireworks, with an annual production value of over ₹2,000 crore. The retail market value of these products could be three to four times the manufacturing value, sources said.

The industry also faced production disruptions due to rainfall in October in key manufacturing centres such as Sivakasi and Sattur.

Labour shortage

The shortage of workers, particularly migrant labourers, added to the industry’s difficulties. Many workers did not return this season as they found better employment opportunities in other sectors, either in their home towns or elsewhere, sources said.

Late SC ruling

The industry welcomed the Supreme Court’s September 30 interim order conditionally permitting the manufacture of next-generation joined green crackers. However, manufacturers said the ruling came too late to make a significant difference to this year’s production.

By the end of September, nearly 90 per cent of the season’s production would typically have been completed and the products dispatched to markets.

The Supreme Court, October 29, 2026, further said it is not inclined to impose a complete ban on firecrackers for Deepavali, emphasizing a balanced approach. A Bench of Justices MM Sundresh and PB Varale asked the government to file an affidavit on preventive measures taken so far.

Online sales gain traction

Amid the challenges, some manufacturers are witnessing an increase in online sales of fireworks, with orders coming from different parts of the country.

Online sales are emerging as an additional channel for manufacturers to reach customers beyond their traditional markets, said sources unable to give data on the online sales.

The industry, however, continues to face mounting structural challenges. Over the last five to six years, fireworks manufacturers in Sivakasi have been grappling with multiple problems, ranging from regulatory uncertainty and rising input costs to labour shortages.

“It is now a survival issue for thousands of units and lakhs of workers, with the problems multiplying every year,” industry sources said.

Published on November 1, 2026