Business

Matchbox-making units in crisis

KOCHI: About 500 cottage industrial units engaged in making matchboxes and splints are facing closure as wood used for the purpose is being taken to Tamil Nadu in large quantities, Kerala State Match Splints and Veneers Manufacturers’ Association has said.

As a result of unchecked export of wood items like ‘matti,’ ‘paala’ and ‘elavu’ to Tamil Nadu, local match-making and veneer units are starved of these raw materials, association president K.M. Hussain said in a press release here on Monday.

If the export of softwood items continued unabated the units in the State would close down in two years, the release said. If wood is made available in the State, these units provide employment to thousands of people and the State would gain significantly in taxes. Currently, the State sustains a loss of about Rs.five crore annually in Central Sales Tax, the press release said.

The splinter-making units in the State are not able to work for more than four days a week. The matchbox and splinter-making units employ nearly 50,000 people. These units pay up to Rs.10 crore as taxes.

Paul Thengumpilly will be the new general secretary of the association. K.M.A. Latheef will be the treasurer, the press release said.

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