Ban Iron Ore Export - Foundry Urged
The foundry industry urged the Centre to impose a ban on iron ore export to China so as to arrest a massive unemployment problem. "Though China is the major benefactor of iron ore exports from India, they do not export coke to India as the Chinese government is encouraging export of components and finished goods only. The finished products of iron ore coming out of China cost 25 percent less than those from India. Centre does not want to ``irritate'' China by imposing such a ban
This affects Indian exports," claimed Jagadeesan, chairman of The Institute of Indian Foundrymen, Coimbatore, during a press conference here on Wednesday. The policies here are wrong and the Centre does not want to ``irritate'' China by imposing such a ban or control on the export. Jagadeesan said there is an unprecedented increase in prices of raw materials like pig iron, coke, steel and scrap every month, sometimes even within two or three days.``International customers do not appreciate the changes in price very often.
This puts the foundry industry at a heavy loss,'' he said and added that the industry was also affected by the dollar depreciation. According to Ilango, Vice President of the Coimbatore District Small Industries Association (CODISSIA), China is trying to destroy the Indian market and stressed that the government should either ban or control exports. Coimbatore, being one of the largest foundry centres with 600 foundries and over 1 lakh people employed, bears the brunt as the cast iron export has come down last year. The region produces about five lakh tonnes and exports cast iron worth Rs 1,000 crores per annum.
