Namesake price reduction for Raw materials: Industrialists blame Traders as reason

Despite multiple representations sent to the Central Government, imports have been restricted with only a few steps taken to resolve the issue.


Coimbatore: Despite the upsurge in price of Iron ore, it has just been reduced by Rs 10,000 per tonne. Industrialists say that the price hike of raw materials such as steel, iron etc has been reduced only by a minimal amount. Industrialists allege that the trader activities as the sole reason behind it.

The abnormal price hike of raw materials such as Steel, Copper, Pig iron etc has severely impacted the manuacturing sector industries in Coimbatore.

Despite multiple representations sent to the Central Government, imports have been restricted with only a few steps taken to resolve the issue.

But inspite of these steps taken, industrialists in Coimbatore complain that only a minimum price has been reduced on the raw materials and say that traders are the main reason behind.

Coimbatore, Tiruppur districts Micro and Cottage Entrepreneurs Association (COTMA) President, C Siva Kumar said that "Iron ore is the one material which is used to manufacture various raw materials such as Steel, Copper etc. More exports of iron ore had a big impact on the prices of raw material.

Usually the price of one kilo Steel (above 70 Dia) is sold at Rs 54. But suddenly the prices have skyrocketed and has reached to Rs 68 per kilo. Now its been sold for Rs 65.

The Central Government has taken steps to reduce the price by restricting iron ore imports. Due to this price of one tonne iron ore has been reduced by Rs 10,000 per tonne. But the price of raw materials should have been reduced by Rs 8 to Rs 9 per kilo. But at present only a very minimum amount has been reduced (Maximum upto Rs 3 per kilo).

Traders are not reducing the price and when we question them, they give replies such as they have only old stock etc.

This is not fair. We request the Central Government to look into this seriously that the steps taken by them in reducing the raw material prices has nor reached the industrialists.

Manufacturing sector will reach a normal stage only when the price reduction is done properly."

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