Why I did not celebrate the last minute cracker ban imposed by different state governments during Diwali?

As the nation celebrates the famous festival of Diwali, several States and Union Territories in India have announced a complete blanket ban on bursting and the sales of all forms of firecrackers due to the concerns about rising air pollution and risk of spike in COVID infections. In big states like Maharashtra, Delhi, West Bengal and Rajasthan bursting of fire crackers have been completely prohibited. However, some states have permitted the bursting of green crackers with certain conditions. In UP and Bihar, crackers are allowed only in cities with moderate air quality. Certain other states have allowed crackers only for certain hours.

While the nation cheered for the cracker ban decision (understandably so) as the air pollution disproportionately affects citizens, but a very few section of people paid heed to and acknowledged its drastic negative economic impacts on poor households whose income is solely based upon the cracker sales and the good economic performance of cracker industry in festive seasons, such as Diwali.

India’s firecracker industry is estimated to be around Rs 5000 crore, with the majority of the production in Sivakasi in Tamil Nadu. The small town of Sivakasi produces over 90 per cent of the country’s crackers worth over Rs 4000 crore. It employs more than 400,000 workers directly in the firecracker manufacturing factories and another 500,000 people are engaged in related industries such as packaging, printing, paper rolling transportation and the like. The industry primarily employs people from the poor, lower middle class and deprived households. Their meagre income is solely based upon the sales of firecrackers during festive seasons. Cracker manufacturers at Sivakasi are worried that fireworks worth crores of rupees will remain left unsold this Diwali due to state-imposed blanket ban.

Since the last 3 years, the industry has plunged into a legal and financial crisis due to repetitive last-minute government flip flops and active intervention by courts. Over 90% of stocks were dispatched from Sivakasi before October to be available on time for Diwali. However, due to the ban, the unsold stocks will be idle with various distributors and thus, the last-minute cracker ban is completely unjustifiable when the total production and distribution had already been done and poor workers were expecting their incomes by Diwali. As per the directions of the Supreme Court, a lot of these manufacturers had produced green crackers in Sivakasi, though many are unable to get the formula to make green crackers the right way.

It is very important to realize that, if and only firecrackers were purchased (wholesale or retail) from manufacturers and distributors then only poor households can have money for a living and can relatively enjoy the Diwali festival as privileged people did. The loss that lakhs of traders across the country, mostly small shopkeepers would suffer is difficult to fathom. The cumulative effect will be visible on the ability of their families to spend and enjoy the way probably others would. Less cash to spend would then impact other businesses like clothing, electricals, appliances, automobiles etc. A cumulative or a ripple effect will affect everyone, more or less.

The firecracker industry works tirelessly for 10 months for a sale which majorly takes place in a month. The industry had already been suffering financially and this worsening situation was exacerbated by COVID-19. The producers lost the marriage season in summer (due to lockdown), followed by muted Ganesh and Navaratri festivities. Diwali gave them immense hopes and they expected to earn a little but that too was shattered by this last-minute cracker ban. All these factors in culmination are going to result in drop in sales and revenue and thus further declining their wages/incomes and making them vulnerable to unemployment crisis.

With a few exceptions of big manufacturers, much of the fireworks industry in India is small-scale. A ban on fireworks is not easy on local businesses and can force them shut. It has also potentially increased the black markets in the country and they have already been selling the crackers at exorbitant prices. They don’t even have enough resources to fight for their cause legally, as they don’t even get timely hearings too. As a result, poor people keeps suffering. Many small manufacturers had taken a loan for investment, hoping for a good return. Since they are unable to sell the crackers in many states, they are likely to face heavy financial losses and thus increasing their debts. To be more clearer, this post by no means is justifying the use of crackers, nor it is suggesting you to burst crackers and I am as concerned for the environment as you are. However, I feel that nature cannot be cared for at the cost of lost opportunities for the poor. The switch is not going to be so easy as the privileged people perceive to be. There needs to be taken a balanced approach and manufactures need to be informed well before time so that they can look for alternative sources of income.

If the government is so concerned about the environment and air pollution issues, then they should focus on vehicular pollution, industrial emissions and waste burning which are major causes of pollution in India. Such repetitive irresponsible last-minute state interventions are always going to be counter productive and exacerbate the miserable situation of poor households. By the way , has there been any discussion and decision on how to dispose of these huge piles of explosives now? In the end though, it is the consumer demand that will incentivize producers to produce. Unless citizens themselves dedicate to a cleaner, healthier Diwali, no ban on crackers or switching over to greener versions will ever be successful. When it comes to viable environment protection movement, equity and the concerns of most sections of people need to be taken into account!

Comments

Popular posts from this blog

George Stigler on Monopolies, Antitrust laws and Competition

Explained :- Environmental Economics