Recent reduction in brass scrap tariff seem to have failed to cheer brass industry in Jamnagar, which enjoys 80 per cent share in country's total brass scrap market. The Department of Customs has rationalised the tariff by 20.33 per cent to $3,252 (Rs 1,56,000 approx.) per tonne. However, industry players are of the view that it is not going to benefit the industry and demanded that the brass scrap tariff should be $2,000 (Rs 96,000 approx.) per tonne.
Brass industry in Jamnagar has been facing tough times since Diwali due to highly volatile prices of raw material. Brass scrap price has dipped by Rs 100 per kg to Rs 160 per kg in the last three months.
Earlier the prices were hovering around Rs 260 to Rs 270 per kg. "Industry players had procured the raw materials at higher prices, which raised their production cost. Now the prices of raw materials have come down and brass items are getting cheaper but there are no new orders", said Ramjibhai Patel, president of Jamnagar Factory Owners Association (JFOA).
According to industry sources, Jamanagar houses 4,000 to 4,500 brass parts units, which provide direct and indirect employment to 50,000 and 1,50,000 people respectively.
The turnover of the industry has taken a major hit due to recession. The annual turnover has declined to Rs 2,000 crore to R.1,000 crore. Brass part unit owners fear further reduction in the turnover in the wake of lesser orders. Jamnagar exports brass items to the Australia, US, UK and Gulf countries.
"Dozens of brass factories have cut their production by nearly 50 per cent. The total brass scrap business in the country has dipped to 40 per cent recently, of which domestic business constitute 30 percent and export 10 percent. Government has provided relief in brass scrap tariff but it may not have significant on the industry. The tariff should be lowered to $2000 a tonne", Ramjibhai added.
