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Prime Minister's intervention sought to save the foundry industry Print E-mail
Written by Arjun   
Thursday, 25 October 2007
 Coimbatore: The foundries in the district have gone on an indefinite strike since Monday seeking immediate measures from the Central and State Governments to control prices of the raw material.

 In order to save the foundry industry in the district CPI MP K Subbarayan on Tuesday sought immediate intervention of Prime Minister to find a solution to the 'unprecedent hike' in the prices of raw materials like pig iron, coke and scrap.
 The cost of raw materials used by the foundries had shot up during the last four months. The wholesale landing cost of pig iron was Rs. 20,300 a tonne in June this year and it is Rs. 25,000 now. The price of scarp was Rs. 16,000 a tonne in June and it is Rs. 19,500 a tonne now. The retail prices are nearly 15 per cent higher than the wholesale rates. Most of the small and tiny foundries procure their raw materials from the retail sellers.

 The government should contain the price rise without any delay, he said.

 Nearly 2000 foundries and 500 pumpset manufacturing units in the district have been closed, affecting the lives of nearly four lakh workers as well as making a revenue loss of Rs 40 lakh per day, CPI MP K Subbarayan, who represents Coimbatore Lok Sabha constituency, said in a memorandum to Prime Minister Manmohan Singh. Considering these figures, if the indefinite closer continues, the overall loss can well be comprehended.

 "Therefore I urge you to intervene immediately and initiate corrective measures," Subbarayan said. He added that the government should take concrete steps immediately so that necessary raw materials are available to the manufacturers directly at a reasonable cost.
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