Shortage of raw material hits electrodes industry

Punjab's welding electrodes industry, one of the leading electrodes suppliers in the country, is facing a hard time due to the government's failure to control rising prices and ensuring an uninterrupted supply of raw material.

These electrodes are also used in various types of welding works in steel fabrication, railways, bus services, gates, grills, machine tools, etc.

There are more than 24 such units in Punjab which supply electrodes within the state as well as to other parts of the country, earning a total turnover of around Rs 50 crore annually.

The price of steel wire rod, which is one of the major raw materials used in welding electrodes, has increased from Rs 25,000 per tonne in March 2006 to Rs 29,000 per tonne at present.

The cost of other raw materials used in these units, including rutile, iliminite, ferromanganese, mineral powders, potassium silicate, etc has also by 15-25 per cent.

Lack of constant supply of these raw materials has further added to the problems of the ailing industry. Rutile has only one source in the country, namely Indian Rare Earths Ltd.

Welding Electrodes Manufacturers Association President Parmod Mittal told Business Standard the central government had failed to ensure a regular supply of raw materials required for the industry.

"Despite a steep rise in the prices of the raw materials the prices of the electrodes have not increased accordingly and this is threatening the survival of the industry," he added.