Due to a rise in the cost of the raw materials utilized, the price of a single matchbox will double starting in December. The matchbox will be offered for Rs 2 starting in December.
Because of rising costs and inflation, the All India Chamber of Matches in Sivakasi decided to modify the matchbox price from 1 to 2 after 14 years.
Rise in the price
The last time the price of a matchbox was raised was in 2007 when it went from 50 paise to Re 1. Before that, in 1995, the price of a matchbox was raised from 25p to 50p.
The price of 14 products needed in the creation of matchboxes has risen, according to matchbox makers.
For example, the price of one kilogram of red phosphorous increased from 425 to 810, the price of wax increased from 80 to 58, the outer box board increased from 36 to 55, and the inner box board increased from 32 to 58.
In addition, the matchbox’s price has risen because of growing costs for paper, splints, potassium chlorate, and sulphur, according to the producers.
Meanwhile, the RBI Governor stated that the Reserve Bank is committed to bringing retail inflation back to 4% in a non-disruptive manner over time.
The government has instructed the central bank to keep inflation based on the Consumer Price Index (CPI) at 4%, with a 2% margin on each side.
Retail inflation, which was above 6% in May and June, has started to decline, and in September it was 4.35 percent.
According to reports, the producers planned to price a single item at 1.50 but decided against it since shopkeepers would struggle to pay back 50p change to customers.