About 400 small-scale foundries in Coimbatore will stop production from December 16 because of the sharp rise in raw material prices.
The Coimbatore Tiny and Small Foundry Owners Association has said that its members are unable to operate the units as the price of raw materials used in foundries is up nearly 30%. “The units run at just about 10% profit and can absorb the increase in prices that are revised once a year. However, the prices are going up on a daily basis now,” it said.
The small foundries do not find it viable to continue operations in such a situation and have decided to stop production. This is expected to affect two lakh workers and also industries such as pumpset and wet grinder manufacturing units that buy castings from these foundries.
The Central government should take steps immediately to control the rise in raw material prices, the association said.
