Fight Against Raw Price Hike
About 10 industrial associations related to the engineering industry here have formed a joint action committee to find solutions to the increasing prices of raw materials. According to K. Illango, president of the Coimbatore District Small Industries Association, the cost of basic materials for foundries and engineering units has gone up manifold since January. With the intervention of the Government, the steel companies here announced that they will hold the price line. Mr. Illango said if the company price of steel was Rs. 43 to Rs. 45 a kg, the retail price was Rs. 55 to Rs. 60 a kg. The major steel producers held the price at a particular level. The traders were creating a demand, he alleged. The industries were concerned since some of the leading steel companies were unwilling to sell the materials directly to the units.
Hence, the committee had decided to look at two issues: to represent and hold talks with the steel majors and buy materials directly in bulk. This could result in more than 10 per cent saving for the units. The possibility of the Tamil Nadu Small Industries Development Corporation buying materials from the steel companies and supplying it to the units would also be explored. The prices of pig iron, one of the main raw materials for foundries, had also shot up recently resulting in the other prices also moving up. Hence, the associations would appeal to the Government to initiate measures and control the prices of basic raw materials.
