Coimbatore: At the time lockdown relaxations have started helping industries to gear up production, abnormal price hike witnessed on most essential raw materials has made a huge adverse impact on the manufacturing sector.
Coimbatore: At the time lockdown relaxations have started helping industries to gear up production, abnormal price hike witnessed on most essential raw materials has made a huge adverse impact on the manufacturing sector.
Raw materials such as steel, aluminum, pig iron, and copper, etc. play a very important role in the industrial sector. While the Covid-19 virus outbreak initially hit the industries very badly, relaxations given by the government in the ongoing lockdown has given relief to industrialists. Making use of them, the manufacturers have slowly started to gear up production, but suddenly the prices of raw materials have increased abnormally.
'CODISSIA' President, R.Ramamurthy said,"Yes, the abnormal price hike of raw materials is a big worrying factor. Earlier, one tonne of steel was sold for Rs 40,000, but in recent days it has suddenly increased abnormally to Rs 47,000. All other raw materials such as copper and aluminum have gone up by 20 to 25%. This has made all the MSMEs reel under crisis. The 'SAIL' yard at Coimbatore in Peelamedu that was closed temporarily for construction of railway flyover is yet to open even after the work is over and the bridge has been opened for public use. Abnormal price hike off raw materials is a big worrying factor to all industrialists."
Coimbatore, Tiruppur Districts Micro and Cottage entrepreneurs Association (COTMA) President, C.Sivakumar said,"Pig iron which is one of the main raw materials which was priced at Rs 30.25 per kilo in June has now increased to Rs 35.50. Aluminium price which was Rs 110 per kilo has now gone up to Rs 135 per kilo. Coke prices also went up by Rs 4.50 per kilo. Scrap items have also witnessed an increase of Rs 5 per kilo. This has heavily affected the manufacturing process. Whenever an election is imminent, the prices of raw materials increase abnormally. The government should ensure reasonable and stable pricing."
'TACT ' president J. James said," Steel is an important raw material for various products such as pumps, motors, wet grinders etc. The price of steel and that of other raw materials have risen abnormally. This is not a good sign. The Central and State Governments should do all within their capacity to ensure all raw materials used in the manufacturing sector are available at reasonable prices."