Kerala candle-makers are trying to shield an industry, worth about Rs 20 crore annually, from a severe shortage of paraffin wax that threatens to squeeze the life out of the faltering units. For them, the union petroleum ministry's recent decision to deregulate the import of some petroleum products has not come as a boon. Instead, the candle-makers are sensing a storm and would like the petroleum ministry to keep paraffin wax in the list of commodities reserved to be canalised through agencies appointed by the government.P Salim Kumar, president of Kerala Candle Manufacturers' Association, says that placing paraffin wax on the list of controlled items is imperative if the candle industry has to come out of the storm. "If the government wants to protect us, then imports (of paraffin wax) should be controlled," he told The Financial Express. Since some of the petroleum products are still on the reserved list till 2002, paraffin wax imports also can be on that list, he added.
The candle-makers' unease stemsfrom their inability to go through the process of importing paraffin wax directly from the international market. Even buying from Madras Refineries, the sole supplier of paraffin wax for south India, is a problem for them. Most of the 1,000-odd candle-making units in Kerala are small units consuming just three or four tonnes of paraffin wax every month.
Candle-making units in Kerala have been facing a severe shortage of paraffin wax for 15 years. However, the supply has almost dried up during the last eight months. The candle-makers took the matter to court. On April 28, the Kerala high court ruled that the State Industries Development Corporation (SIDCO), the canalising agency for paraffin wax, should immediately release the pending quota of wax for candle-making units in the state. The court ruled that the quota should be released even though wax has been taken off the list of items with import controls.
According to the candle manufacturers, the high court has ordered SIDCO to immediately release 2,412tonnes of paraffin wax due to them. Kerala requires about 10,000 tonnes of paraffin wax every year. However, SIDCO has been releasing only about 40 per cent of this requirement. Monthly release of wax hovers around 300 tonnes. Even this used to come "irregularly" causing problems for the candle-makers. According to the candle makers' association, most of the units have hardly enough paraffin wax to carry out two to three days of work every month.
Under these circumstances, Salim Kumar said, the centre and the state governments should take responsibility for the supply of paraffin wax to the cottage units engaged in making candles. According to him, each candle-making unit employs 4 to 5 workers who are neither educated nor skilled. The current shortage of wax will plunge them into utter poverty, he points out.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
