400 foundries stop production over raw material price hike

The foundries, affiliated to the Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN), stopped production indefinitely, resulting in a loss of Rs 30 crores daily, its president Shiva Shanmughakumar said.

Coimbatore: About 400 small and tiny foundries in the district remained silent on Wednesday as part of their indefinite strike to draw the attention of the Centre to the spiralling price of raw materials since the last two months.

The foundries, affiliated to the Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN), stopped production indefinitely, resulting in a loss of Rs 30 crores daily, its president Shiva Shanmughakumar said.

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The increasing prices would not only affect the foundries but also related industries such as wet grinder, pump and motors, textiles, and automobiles, who are the large- scale customers of foundry products, he said.

The price increase was from 30 to 55 per cent as compared to the period before the lockdown due to the pandemic, he said.

Moreover, the hoarding by the traders creating artificial scarcity of the materials also contributed to the price hike, he said, adding that the entire industrial sector is seeking the intervention to the Centre to bring down the prices for its survival.

Meanwhile, the Coimbatore and Tirupur Medium Industries Association with nearly 50,000 units has also given a call to down shutters for a day on Wednesday to express solidarity with striking foundries.

A total of 19 associations of small and medium industries had already staged a demonstration here on Tuesday, urging the Centre to take steps to bring down the price of raw materials.