10% foundry units shut, others operating at 50% capacity: IIF

“Many of the smaller foundries have closed down due to the shortage of working capital as they could not absorb the price rise. In Rajkot, Kolhapur and Belgaum, the foundries have reduced the working days to three in a week. They have cut down the production by 50 per cent,” he said, adding that the foundry industry provides direct employment for five lakh persons.

Main raw materials that have seen a spike in cost are pig-iron, scrap, ferro-alloys, chemicals, and minerals like Bentonite and sand.
“In February 2022, pig iron was around Rs 56 a kilogram and today it is Rs 68. In November, pig iron cost Rs 44. Prices of scrap have also risen by Rs 9-10 a kilogram. Last March, the price of steel scrap was Rs 6 per kilogram,” added Jain who was in Ahmedabad to announce the schedule for the 70th Indian Foundry Congress, the 18th International Exhibition on Foundry Technology, Equipment, Supplies and Services and the Cast India Expo at Gandhinagar from April 17 to 19.

The IIF official said that the transportation costs have gone up due to increase in diesel costs. “I get Bentonite from Kutch to Indore. The cost of Bentonite is only Rs 1.40 per kg, but the freight cost is Rs 3.20 per kg which has increased to Rs 4.5,” he said adding that some of the increases are “abnormal”.

“We have also requested the government to take some action. We have not only asked for a reduction in import duties, but we have also alerted them of cartelisation. We have also asked the government’s help in restarting some pig iron plants, which will help stabilise the price. The raw material supplies from China have reduced and the Russia-Ukraine war is adversely affecting us,” Jain added.

The exhibition at Gandhinagar is being held for the first time without any foreign participation. “We have not invited the Chinese and other countries will not participate due to Covid restrictions and Russia-Ukraine war,” Jain said.