At a time when many industries are reeling under the adverse impact of global meltdown, incense-stick industry stands tall.
At a time when many industries are reeling under the adverse impact of global meltdown, incense-stick industry stands tall. Unlike the industries which are laying off their workers, incense-stick making has opened a new avenue of employment for people.
The president of Gujarat Agarbatti Manufacturers and Dealers
Association (Gamda), Dilip Shah, recalled that incense-stick manufacturing industry had helped the labour community during the time of closure of textile mills in the city. Now, when diamond industry is facing much trouble due to meltdown, the incense-stick making industry can provide succour to unemployed diamond workers. In Bapunagar area, many people have turned to incense-stick making business. "We have written to the state government that if any diamond worker approaches incense-stick manufacturers, he will be provided with job," he told DNA on the sidelines of a two-day exhibition of Gamda at Tagore Hall in the city. "This industry is providing employment to around 20,000 people in the city. One of the advantages of the industry is that workers can work according to their convenience at their home," he said.
Devji Patel of Surya Agarbatti said, "I have helped a few people set up their own business after providing them training in my factory. I also continuously help them in purchase of raw materials and marketing of agarbattis."
One Jitendra Moradia said that he worked as a diamond worker for eight years, but now due to slowdown he has joined his father's business of incense-stick making. "Slowdown has forced me to join this industry and I am quite happy to be an employer instead of being an employee," he said.
Another diamond worker, Dilip Mehta, said that he had tried his luck in many businesses, including diamond and embroidery, but failed. "Now, I am working with a firm engaged in agarbatti manufacturing and my family is happy that my job is a secure one."
Shah said the incense-stick industry was facing the problem of high Vat on raw materials. A majority of agarbatti units do not need Vat registration as their turnover was less than Rs5 lakh. This was the reason why they do not get compensation of Vat that they pay on raw materials, making their production cost higher compared to big players in the industry.
Moreover, at present, manufacturers have to pay 15 per cent Vat on raw materials, which is higher compared to the neighbouring state, making the local industry uncompetitive.
Gamda, with the help of Gujarat Chamber of Commerce and Industry, made a representation to the state government in this regard. If the government provided support, this industry would have a lot more potential to provide employment even in the time of economic slowdown, Shah added.
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