Can you afford a light?
This packet of fifty matches costs 1 rupee. The exchange rate is about 45 rupees to $1 USD. So the packet costs just over $0.02.
HOW IS THIS POSSIBLE?
Sure, they are small and made from wax; nevertheless, the materials alone for fifty matches and a box must cost something. Then figure in the costs of time, overhead and shipping.
Yet, there they are, on sale for 1 rupee a box at every corner store.
Do the the majority of low-income homes In India cook using wood-burning stoves and ovens? If so, I wonder if the matches are subsidized by the Indian government as a form of social welfare?
That’s about what matches cost here.
@ Liam
I think a lot of house here do use gas ranges without their own ignition system, so matches are required. Also there are a ton of smokers here still.
@anthony faber
So this is the standard price of matches in the USA and India? I still am in awe at how this product can get to market at such ridiculously low prices! Interestingly, I have no idea what matches cost in the USA since I am so accustomed to picking them up for free at bars and restaurants.
It is similar to what I think on my visit here to US. Why is such a simple matchstick too costly here. When I could get a nice haircut for Rs. 25/- in India (.50 USD) why is it $15 minimum for a haircut here in US?
@ Rajeshwaran
I went and enjoyed a 50 Rs haircut yesterday thinking how cheap and high quality it was. Now I am thinking I overpaid! Haha.
Thanks to a great referral by one of my readers, here is an insightful article about the pervasive nature of match distribution in India and the potential that contains: http://www.nextbillion.net/blog/2009/10/28/match-point-how-to-reach-rural-markets