Pig iron price hike pushes Rajkot foundry units to crisis

The engineering industry, including the foundry industry, of Rajkot is facing a crisis due to the steady hike in the price of pig Iron for the last 6-7 months.

The prices have touched Rs 16,000 per MT, representing a 200 per cent increase in a year.

The prices before six months was Rs 8,000 per MT and it has now reached Rs 16,000 per MT.

Ahmedabad Engineering Manufacturers' Association has declared a strike for four days from January 1 across the state, but the Rajkot foundry industry decided not to join this strike.

In addition to Rajkot, foundry industries of Bhavnagar, Jamnagar and Surendranagar are also not supporting the strike, sources said.

Nareshbhai Patel, president, Rajkot Engineering Association, said, "We had discussed the issue with the government. The state as well as the central governments are responding to us and have taken a supportive stand. So, going on strike at this stage is not proper. So, Rajkot foundry industry is not supporting this strike."

Dhansukhbhai Vora of the Greater Rajkot Chamber of Commerce and Industries, there is a possibility of further increase because of export of pig Iron to China.

This has ultimately hurt the local small-scale industries.

Rupeshbhai Mehta, president, Machine Tools Manufacturers' Association, said around 750 foundry units using two to three MT of pig iron per month are in trouble on account of the increase in production cost due to price hike of pig iron.

Coal prices have gone up by Rs 5,000 per MT.

The government should take steps to bring raw material prices under control and save the small-scale industries, industrialists said.