MP News: Cracker Sales Drop 20% In State, But Profits Rise; Widespread Floods Disrupted Supply Chains

Bhopal (Madhya Pradesh): Cracker sales in Madhya Pradesh dropped by around 20 per cent this Diwali, with traders attributing the decline to recent floods and inflated prices. However, despite the fall in volume, many traders reported good profits due to higher selling rates.

As per the firecracker traders, this year’s dip in sales was because of the multiple factors like floods, high prices and confusion over the sale of green crackers versus banned conventional crackers.

The temporary permission to sell green crackers created uncertainty among traders and consumers alike, as many feared potential violations or penalties.

“The widespread floods caused a 15–20 per cent drop in sales across Madhya Pradesh,” said Mohit Goplani, vice president of the Cracker Traders’ Association. “Prices of crackers were quite high this time, so while the sales volume went down, overall business value increased.”

Several traders faced difficulties obtaining licenses for the limited sale of green crackers, which were sold discreetly at higher prices. Widespread floods in various regions disrupted supply chains and caused damage to existing stocks leading to a spike in prices of the available legal stock.

Administrative decision to allow the sale of green crackers came with a short notice for obtaining licenses, forcing many traders to resort to illegal sales of conventional crackers or close shop altogether. 

The confusion surrounding green crackers and the presence of banned conventional crackers in the market led many consumers to hold back purchasing, fearing potential legal issues or the quality of the products being sold.