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CODISSIA plea on raw material prices

Staff Reporter

COIMBATORE: The Coimbatore District Small Industries Association has appealed for measures to ensure stable and firm prices of raw materials used by the small-scale industries.

In a release, its president, J. Balu, said that the prices of almost all the raw materials used in the engineering industry such as aluminium, nickel, pig iron and steel had shot up during the last few months. The rates of aluminium and copper had almost doubled and "there was no sign of it coming down." For instance, the price of copper had shot up from Rs. 228 a kg in April 2005 to Rs. 369 in March 2006. Manufacturers of pumps, motors, castings, machine tools and automobile components who no longer find it viable to run at old costs had approached their customers for price increase.

However, in the current competitive environment, any effect in hiking the product cost would take time and hence many of the units were suffering losses. Exporters were also hit. Many of them had long-term contracts with their customers and were finding it difficult to get a price revision. The association appealed to the Centre to intervene for a stable price of raw materials so that the small-scale manufacturers would be able to meet their commitments.

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