Wooden matchbox industry is widely distributed in India employing more than 2, 50,000 people under it. This industry in India is categorized in three parts: The cottage industry, Small scale and mechanical industry, where the first two types have captured the larger part, giving only 18% share to mechanical one.
Cottage industry, by definition is the one whose production is less than 75000 cases in a year, thus its production is limited and mostly all remaining demand is fulfilled by small scale industry. It is a low capital involving product, with minimal use of machines and high labour involvement. From women, children, elders to handicapped person, it provides employment to all. For all these reasons, it is also being largely supported by government, as it is good for socio-economic development of country.
With all these, there are several issues involving in matchbox industry that has to be taken care of. These issues include:
- Monopoly of few matchbox makers
- Failure of cottage industry
- Exploitation of women and child labour
- The introduction of new technology which involves less labour
- The problem of splint and veneer making industry
- Shortage of raw material as forests are disappearing
- High price of chemical that is being used
- Labour shortage and geographical constraints
- Lack of distribution and marketing institutions
Small Scale Wooden matches manufactures in India have a strong hold in the southern part of the country; 70% of the total country production is manufactured there. Tamil Nadu, Kerala, Andra Pradesh and Karnataka are the highest producing states, where labor is very cheap. With the number of incentives and benefits provided to small scale industry and differential excise duties, this industry is seeing the phenomenal growth in coming years and government is trying to cater the related issues. It will definitely make a mark in the development of economic structure of the country.
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