High raw material costs hit SSI units in Jalandhar

Due to an unusually steep hike in prices of raw materials, small-scale units of the district, including those making pipe-fitting and valve cocks, are on the verge of closure.

"The cost of raw material has increased manifold. Copper scrap was priced at Rs 171.25 per kg last year, but this year it has swelled to Rs 340 per kg," said Rup Singh Dhumal, president of the Punjab unit of the Laghu Udyog Bharti, adding it was almost impossible to run units at such high costs.

Similarly, zinc, which was available at Rs 81.75 per kg last year, is now priced at Rs 176; the price of tin at Rs 497 last year has risen to Rs 538; the price of lead from Rs 47 a kg to Rs 63 a kg; the price of brass scrap from Rs 119 a kg to Rs 211 a kg; and the price of nickel from Rs 825 a kg to Rs 922 a kg.

Apart from hikes in raw material prices, the cost of labour and power has also increased, according to Dhumal.

Due to rise in the raw material, labour and power prices, the cost of production has increase but due to competition from dumped products of China and Korea in the market, it was virtually impossible to sell the products in the market, he said.

He sought both the union and state governments' intervention in the problems of small-scale units.