Iran import disruption pushes up paraffin wax prices, match industry in TN's Thoothukudi under pressure

Thoothukudi, March 10
The safety match industry in southern Tamil Nadu is facing fresh challenges as the price of paraffin wax - a key raw material used in the manufacturing of safety matches - has risen sharply over the past two weeks.

The price of paraffin wax has increased from around Rs 80 per kilogram to nearly Rs 130 per kilogram, primarily due to delays in imports from Iran, which is one of the major suppliers of the material to Indian manufacturers.

Paraffin wax is a petroleum-derived product widely used in industries such as candle making, packaging, and match production because of its ability to provide smooth ignition and steady burning.

In the safety match industry, it is used both as a coating on wooden matchsticks and as a key component in wax safety matches to ensure that the flame travels smoothly along the stick.

Manufacturers in the match-producing clusters of Thoothukudi and neighbouring districts say that the sudden rise in prices has been triggered by supply disruptions linked to the ongoing conflict in West Asia.

The conflict has slowed the movement of shipments from Iran, affecting the availability of high-grade paraffin wax that many Indian match manufacturers rely on. Iran is a major global exporter of paraffin wax, supplying various grades of the petroleum-based product to markets across Asia and other regions.

The imported wax is generally preferred by match manufacturers because of its higher quality and better oil content, which improves the performance of matchsticks during ignition and burning. In the absence of sufficient imports, some manufacturers have begun sourcing paraffin wax domestically from Chennai Petroleum Corporation Limited (CPCL).

However, industry players say that the domestically produced wax contains comparatively lower oil content and does not match the quality of imported Iranian wax, making it less suitable for certain types of match production.

The steep rise in the cost of paraffin wax has begun to affect the economics of match manufacturing.

Producers estimate that the price hike could increase the production cost by at least ₹10 per carton containing 600 matchboxes.

Despite the increase in input costs, manufacturers have found it difficult to raise the selling price due to intense competition and market constraints.

Industry observers warn that if the disruption in imports from Iran continues and supplies remain tight, match manufacturers could soon run out of stock.

Any prolonged shortage of paraffin wax may slow down production across match units in southern Tamil Nadu. The safety match industry in the region supports a large workforce, particularly women employed in small and medium-scale units.

A decline in production could therefore have serious economic consequences, potentially affecting the livelihoods of more than five lakh women who depend on the industry for employment.