Cast iron exports: Faced with rising raw material costs, the foundry industry calls for a ban on cast iron exports

0
KOLKATA: The struggling foundry industry is facing a double whammy as units experience a sharp rise in raw material costs and a drop in exports due to the Russia-Ukraine crisis, an official said on Friday. The industry, which is a key supplier of metal castings to nearly every engineering sector, is calling for an immediate ban on the export of pig iron and iron ore, key foundry raw materials, a- he declared.

“Already 30 percent of foundries in Bengal are closed. Several more are expected to follow. The foundries, which are currently operating, are operating at about 50 percent capacity,” said Indian Foundry Association Vice President Akash Madhogaria.

The foundry industry is the “second largest producer of value-added metal castings in the world with production of 12 million tonnes per year, generating revenues of $19 billion and exports of $3 billion”.

“The price of pig iron has risen from Rs 40,000 to Rs 58,000 per ton since January this year. raw materials increased in the last quarter,” he added. mentioned.

According to the industry body, around 300 foundry units in West Bengal, 95% of which are run by MSMEs, employ one million people.

Nationally, the sector employs around two million people directly and indirectly.

The association also sought government support to bolster the industry with revised programs like the credit-linked capital grant scheme, aimed only at MSMEs, as the resulting incentives need “upward revision to increase modernization investments.

Share.

About Author

Comments are closed.