Coimbatore foundry business hit by raw material prices
It is reported that frequent increase in raw material price has threatened to hit production of foundries and also exports from Coimbatore, which currently accounts for about one fourth of India's INR 4,000 crore annual casting exports.
Representatives of Coimbatore chapter of the Institute of Indian Foundrymen said that the units faced an unprecedented increase in raw material prices mainly, pig iron, coke, steel and scrap. They added that "The unit is unable to import pig iron and coke from China, which was the main raw material for the foundries. The government should control export of iron ore. It should also abolish import duty on pig iron to bring down the prices."
They further added that the duty entitlement passbook scheme benefits for casting exports should be increased in proportion to the current hike in raw material costs and the DEPB cap should be removed.
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