The spiralling prices of steel, which have registered a 35-50 per cent rise in various grades in the last three months, have unnerved micro small and medium sector enterprises (MSME) in the Baddi-Barotiwala-Nalagarh (BBN) industrial hub.
With virtually no regulation over their prices in the market, a cascading effect was visible on various industries like engineering goods, automobile, infrastructure, etc. Demanding immediate intervention of the Union government, the investors said the MSME sector has limited capital and such price hike has landed them in a financial mess.
Union minister Nitin Gadkari had also drawn the attention of the Prime Minister towards the spiraling prices of steel in the last six months as viability of projects was hit.
“In the absence of regulation over the steel prices, the MSME sector, which uses steel as a raw material, was on the brink of closure. All industries operate on committed orders based on a committed price and the rising prices have made the situation extremely tough in the last three months,” said Sandeep Verma, who runs an engineering goods manufacturing unit at Baddi.
“I’m facing as much as 20 per cent hike in the price of finished goods like spanners and the trade has been rendered uncompetitive. Though steel prices did increase up to 30-35 per cent after a year or two, this year all limits have been crossed and up to 50 per cent hike has been registered in the last three months,” rued Verma, who also heads the export panel of the Baddi Barotiwala Nalagarh Industries Association.
Business had barely shown signs of recovery after the lockdown but this price hike coupled with the lack of availability of other allied items like iron ore, steel scrap, cast iron, etc., has added a spoke in the wheel.
“It will also sharply hit infrastructure projects like bridges announced by the government as the cost of construction has also gone up. The contractors will no longer be able to execute them on the permitted price,” said another investor.
“The cost of steel used in domestic construction has increased from 38 per kg to Rs 51 per kg in the last three months, thus affecting the common man,” informed Verma.
The automobile industry is also feeling its cascading effect as machine parts have become dearer in the last three months.
Source : https://www.tribuneindia.com/news/himachal