The Hindu : Front Page : Lock units remain locked

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Sunday, Apr 06, 2008
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Lock units remain locked

K. Raju

DINDIGUL: Sharp increase in prices of steel and other metals has paralysed the traditional lock industry in Dindigul district, leaving hundreds of workers jobless. Over 60 lock units have stopped production for the past eight days and declared lay off.

The lock industry, one of the major small scale industries here, has been offering jobs to 400 families for over five decades. Several clusters of lock units at Nallampatti, Paraipatti, Mettupatti, Bharathipuram, NGGO colony, Nagal Nagar and Pillamanaickenpatti villages engage in manufacture of high quality specially-designed locks.

While prices of steel polish rod had almost doubled in less than a month, that of rods used for making keys had spiralled to Rs.60 a kg from Rs.35. Bronze sheet hovered around Rs.310 a kg and steel sheet for making body had catapulted to Rs.45 from Rs.22 within three months, said A. Mani Raj, who runs a lock unit for over three decades.

“Our sale price does not match even raw material cost. How can we pay wages and run the industry?” he posed.

Unlike other products, prices of locks are fixed by traders and not by the manufacturers. After hectic parleys, traders have agreed to raise the price of a lock by Rs.5. But raw material costs have increased by Rs.25 per lock. “Manufacturers have suddenly revised steel prices. We have been negotiating with them for a rollback. Meanwhile, we have stopped production to scale down loss,” said N. Kanaga Murthy, who has 40 workers in his unit.

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