COIMBATORE: Unable to cope with the rising raw material costs, small-scale foundries in the district have decided to shut operations and launch an indefinite strike from Wednesday.
While the foundries were hit hard by the lockdown, the steep hike in raw material prices has worsened the situation, said president of Coimbatore Tiny and Small Foundry Owners Association (Cosmafan) A Sivashanmuga Kumar. “Price of raw materials has been increasing around the same time for the last four years. Along with the main raw materials like pig iron, scrap and coke, price of allied components has increased by 116%. On an average, raw material prices have increased by 26% since November,” he told reporters.
Industry association heads plan to meet Union Minister
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AAA Representatives of industrial associations in Coimbatore plan to meet the Union Steel Minister shortly to explain the problems faced by Micro, Small, and Medium-scale Enterprises (MSMEs) because of the exponential rise in raw material prices in the recent weeks.
Heads of the associations that are part of the Joint Council of Associations of Coimbatore told press persons here on Thursday that industries will not be able to continue operations if the price increase continues for a month more.
According to them, prices of steel, copper, stainless steel rods, AMINE gas, PVC resin, aluminium have all increased multi fold.