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Skyrocketing steel prices put Punjab industry in tight spot
With the prices of steel rising by ₹10/kg in last one month, industrialists are blaming big manufacturers for increasing the costs in the garb of Russia-Ukraine crisis
The exponential rise in steel prices has left the Punjab industry, especially the bicycle and auto-part manufactures, in a tight spot.
With the prices of steel rising by ₹10/kg in last one month, industrialists are blaming big manufacturers for increasing the costs in the garb of Russia-Ukraine crisis. Calling it a double whammy for the industry, industrialists said not only they are becoming incompetent in the international market, but are also under compulsion to honour the previously placed orders by buying steel at comparatively high prices.
Urging the Centre to intervene into the matter, the industrialists said rapid increase in steel prices is being witnessed on a daily basis.
President of Federation of Industrial and Commercial Organisation (FICO), Gurmeet Singh Kular, said, “Prices are soaring due to the cartelisation by big manufacturers. The price has increased by around ₹10,000 per tonne in the last one month. How will the industry survive in these circumstances?”
“We are also not getting new orders in the international market as China, which imports steel from India, is selling cycles at a lower price in the international market. Earlier, the prices of steel used to increase on monthly basis, but now a hike is being witnessed almost daily, which is unacceptable,” Kular added.
The industry has asked the central government to stop the export of steel and give preference to indigenous manufacturers.
Upkar Singh Ahuja, president of Chamber of Industrial and Commercial Undertakings (CICU), said, “The big manufacturers in the country are taking undue benefit of the Russia-Ukraine war and the price is being increased regularly by claiming a shortage of supply. The input cost of the steel manufacturers has not increased overnight. The central government should intervene to provide relief to the MSME sector, which suffered huge losses in the last two years due to the pandemic.”
Industry to stage protest tomorrow
Slamming the Centre for its alleged failure in providing relief to the industry, various industrial organisations, including Federation of Punjab Small Industries Association (FOPSIA) and Fastener Manufacturers Association of India, have announced to stage a protest against the central government on Ludhiana’s Gill Road on Saturday.
FOPSIA head Badish Jindal said, “The industry is forced to come out on roads as the government has failed to pay heed to its pending demands of controlling the steel prices in the country.”
“Many of the industrialists have stopped placing orders to purchase steel and production has come to a halt. They are anticipating that the prices of steel will decrease once the war is over,” Jindal added.
