About 450 small and tiny foundries in Coimbatore stopped production for a day on Thursday demanding efforts by the Central and State Governments to streamline raw material prices.
According to Siva Shanmugakumar, president of the Coimbatore Tiny Small Foundry Owners Association, the prices of coke, pig iron and scrap have risen sharply in the last one year. While the price of coke is up 54 %, that of pig iron has increased by 28 %. Scrap prices are up 18 %. “Prices will go up, but the revision should be once in six months or so. If it fluctuates we are unable to supply at the agreed prices to our customers,” he said.
The foundries have been able to increase the product price only by 6%. “We supply to pumpset manufacturers, automobile sector, and general engineering units. They are also aware that raw material rates are going up. But, they are unable to give better price for the castings,” he said.
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Public sector units have suspended pig iron production. So, the foundries are depending on the private units. This is another reason for the price fluctuation. For the last three months, the foundries have been trying to sort out these issues. The association had submitted memorandum to the District Collector thrice seeking efforts to streamline prices, fix a period for price revision, and extension of repayment period for loans taken by the units. The association members also plan to meet the State and Central Government ministers in this regard. The annual turnover of the 450 units is ₹. 1,650 crore, he said.
Tamil Nadu Association of Cottage and Micro Enterprises extended support to the one-day strike by the foundries.