Industry sources report that steel, copper, zinc and brass prices in India are up 30-35 percent between August and the present and are expected to rise even more in the coming weeks.
“Small and medium-sized enterprises will cease to exist if the sharp rise in prices for materials is not stopped. We are already facing a huge shortage of funds, we cannot execute pending orders due to the growth in the cost of investments, despite the cancellation of orders and uncertainty. Receiving new orders is another difficult task, and most businesses do not have the funds, ”said R. Ramamurthy, President of the Coimbatore Region Small Business Association, Indian State of Tamil Nadu.
The Association drew the authorities' attention to the need for a corrective check on the sharp rise in raw material prices.
“The industry has been hit hard here considering that Coimbatore is home to pumps, motors, compressors, wet grinders and a variety of other products besides supplying valves and automotive components. Prices for steel and other related foundry products such as coke, cast iron, cast iron, steel scrap, copper and aluminum have risen 30–35% since April. Market sources are hinting at a further rise in steel prices in the near future, "he said.
The Association has asked the government to allow the import of metals and minerals to reduce the shortage and ensure an uninterrupted flow, to set maximum market prices for such raw materials. In addition, Indian entrepreneurs have asked to re-introduce a subsidized price distribution system for small and medium-sized businesses, as previously done, through SAIL, VIZAG, NSIC, SIDCO and other central government distribution systems.