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Monday, October 5, 1998

Candle-makers in TN await MRL supplies 

Nitya Varadarajan  
OCT 4: Candle makers in Tamil Nadu are anxiously waiting for the resumption of supplies from Madras Refineries Ltd as the major season for them has just begun with the advent of October.

Supplies from MRL had been disrupted for some months now on account of technical problems at the plant. The company is known to supply the best quality of paraffin wax (Type 2), most suitable to make candles. A representative of the All India Candle Makers' Association has taken up the matter with the company on September 22nd and was assured of supplies resuming in two weeks. But with the promises not fructifying, the 2200-odd small and tiny units manufacturing candles in Tamil Nadu are keeping their fingers crossed.

The demand for paraffin wax (Type 2) is expected to be around 3000 tonnes during the next three months as candle makers make the maximum turnover this season.

However, the sales are dependant on power shortages in the state. On an average, demand for paraffin wax from January to September varies around 400to 500 tonnes per month.

Against this, candle makers claim that only 300 tonnes (per month) of paraffin wax was coming into the market. This includes supplies by Indian Oil Corporation and imports from China.

Candle makers are not happy with Chinese paraffin which is of inferior quality but priced high. The landed price of paraffin wax from China is Rs 34,000 per tonne which includes customs duty of 52 per cent.

During peak season, the price of imported paraffin wax is bound to go up more than the current Rs 34,000 per tonne.

It could go upto Rs 36,000 per tonne, dealers admit. Some of the larger stockists are already selling material at Rs 36,000 per tonne with taxes at 11 per cent.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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