Indian foundry sector seeks pig iron import duty cut and power subsidies amid rising costs

Tuesday, 12 January 2021 11:40:47 (GMT+3)   |   Kolkata
       

Faced with mounting input costs and the closure of hundreds of units across the country, the Indian steel foundry industry has sought import duty cuts for inputs like pig iron and subsidies in power costs, according to a statement by the Institute of Indian Foundrymen (IIF) on Tuesday, January 12.

“Prices of pig iron and other raw materials for foundries have gone up by 30-50 percent over the past months. Foundry chemical costs have gone up by 15-20 percent over the past 5-6 months. The industry body has sought subsidies in power costs from the government to stay competitive,” Vijay S Beriwal, IIF president, said.

“Energy costs account for 15-20 percent of foundry manufacturing expenses, which is the highest in the world. The Chinese government extended a 10 percent incentive to their foundry units before the pandemic and another five percent after the crisis. Such measures are necessary for the Indian industry to remain competitive in the global markets,” Beriwal said.

It has been pointed out by the foundry industry that around 400 small and medium-scale foundries in and around Coimbatore in southern Indian closed down indefinitely in mid-December owing to spiralling input costs.

“When 80 percent of our investments are required to procure raw materials, it is impossible to do business. Only half of our customers are willing to revise prices of end products,” an official at the Coimbatore Tiny and Small Foundries Association said.


Most Recent Related Articles

India’s Sandur launches production at new steel mill and allied projects

Goa government plans fresh e-auction of idle iron ore stocks at port stockyards

India’s NMDC to close FY 2020-21 producing 97% of iron ore capacity

Indian Railways unveils priority freight traffic policy for domestic iron ore transportation

India’s JSPL achieves highest-ever monthly steel output and sales in Dec