A case about Delhi’s air
In 2015 three children from Delhi asked the Supreme Court to act on Diwali air pollution. After first banning cracker sales in Delhi alone, the court in 2018 put tight conditions on manufacturers instead, including a ban on barium nitrate, the chemical that gives many crackers their colour and sparkle. Only lower-emission “green” crackers would be allowed.
Sivakasi’s units were shut for more than 100 days in 2018 while the industry waited for a formula it could legally use.
SWAS, STAR and SAFAL
Government scientists at CSIR-NEERI developed three green formulas: SWAS (safe water releaser), STAR (safe thermite cracker) and SAFAL (safe minimal aluminium). They use less aluminium, barium, potassium nitrate and carbon, and were said to cut emissions by 15 to 30%. By October 2019, 230 manufacturers had been trained, and green crackers were to carry a logo and a QR code.
Reinventing a product while the factory is shut.
Who pays while the rules change
In 2019 green crackers were only about 4% of what reached shops. More than 30% of Sivakasi’s small units and some big factories had shut, and the town was reported to have lost over ₹800 crore. “I do not know any other work,” said Muthumari, a 33-year-old daily-wage worker whose small contract unit had no orders.
Points for a finance reader
- Regulation is a business risk. Know which rule could stop your product, and watch it as closely as a customer.
- Stock can become unsellable overnight. Goods made to an old formula are valued at the lower of cost and what they will now fetch.
- Fixed costs do not stop when the factory does. Rent, interest and some wages run on through a shutdown. Keep a reserve.