Coimbatore: Associations of engineering industries have decided to form a consortium to purchase raw materials directly from manufacturers like SAIL and Vizag Steel to minimize the impact of price rice and meet the growing demand.
A decision in this regard was taken at a meeting that industrial associations held with government officials and representatives of SAIL and Vizag Steel on Thursday.
M V Ramesh Babu, president, Coimbatore District Small Industries Association, said, “Usually, the price of raw materials remains stable without much fluctuations for two to three months. So, we could afford to manufacture and handover the products for the quoted price. But now the raw materials’ price changes every few hours. With the fluctuation, it is difficult to manufacture a product for the quoted price, because by the time we fix an order and purchase raw materials, the price would increase.”