Thread by @finshots

For the first time in 14 years, the price of a #matchbox is being raised from Rs. 1 to Rs. 2 per unit.

But what’s behind the sudden price hike?

Thread.👇 (1/n)

Let’s get straight to the math. It takes about 14 raw materials to make matchboxes and as it turns out, these costs are spiraling out of control.

Per Kg costs:
~Red phosphorus Rs. 425 -Rs.810
~Wax Rs. 58 - Rs. 80
~Outer box board Rs.36 - Rs.55
~Inner box board Rs.32 - Rs.58

Then there’s the surging price of paper, sulfur, potassium chlorate.

Who knew making a matchbox takes that much chemistry, right?

Now top that with shipping costs and diesel #prices adding fuel to the fire (literally). And voila, profit margins are crushed.

That’s the reason why the All India Chamber of Matches finally decided to up its prices.

And if this sounds like an inflation story you’ve heard before, that’s because it is.

It’s the classic case of cost-push inflation, that predominated economies for the better part of the year, wherein escalating costs of raw materials bleed into higher prices.

Remember how the demand side was practically in the doldrums last year?

And then it suddenly made a major comeback, while supply couldn't keep up. That's the economic recipe for inflation. The same narrative goes for matchsticks.

Well, if it’s any consolation, there are going to be more matchsticks in a box than before.

You could really use some for Diwali, right?

Sources:

~Humble matchbox falls prey to inflation after 14 years, to cost Rs 2 from December 1: NewIndianExpress

~Matchbox price doubles after 14 years; to cost ₹2 from December: Mint

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