The industrial sector is shocked at the sudden increase in the raw material price, which rose from Rs.3000 per ton to Rs.16000 within a month, and have demanded that the center takes immediate action to protect small scale enterprises.
Coimbatore: The raw material price hike from a ton that reduced to Rs.3000 is now at Rs.16000, has come as a shock to the industrial sector in Coimbatore.
The price hike of major raw materials used in manufacturing industries operating in Coimbatore has come as a shock to the industry as it fell by Rs.3,000 a tonne a month ago and has now increased to Rs.16,000 a tonne.
Sivakumar, President, Coimbatore and Tirupur District Micro and Cottage Entrepreneurs Association (COTMA) stated that “The erratic increase in raw material prices a few months ago caused a major setback for the manufacturing sector industries operating in the industrial town of Coimbatore. The fall in raw material prices at the end of December brought some relief among entrepreneurs.”
He stated that the fall in raw material prices by Rs.3,000 a tonne only to increase to Rs.16,000 in a month has come as a shock and demanded the center’s intervention to immediately takes steps to curb the rise in raw material prices in order to save the micro-enterprises, not just in Coimbatore, but across the country.
Karthik, president of the South Indian Engineering Manufacturers Association (SIEMA), said that raw materials are fundamental to every manufacturing industry. The prices of major raw materials including steel, aluminum, and copper are increasing manifold and the industry is being pushed into a critical situation. “On behalf of the industries, we are constantly sending various demands to the Government of India. Micro and Small Enterprises play a very important role in the overall industrial development of the country. We expect that the Government of India should take action on a war footing to curb the rise in raw material prices to help such important industries grow."
List of raw material price increases (per tonne) January and February 2022.
1. Mild Steel: Rs.65,000Rs.70,000
2. EN 8 steel: Rs.70,000Rs.75,000
3. SS 304 steel : Rs.2,60,000Rs.2,70,000
4. Pig Iron: Rs.49,500Rs.53,000
5. Coal: Rs.50,000Rs.57,000
6. Aluminium: Rs.2,52,000Rs.2,68,000