You are here: Home > Sectors

30/12/2016 11:33am

Demonetization: Increased price may lead to closure of bicycle units

image Demonetization: Increased price may lead to closure of bicycle units

Ludhiana, Dec 30 (KNN) The Ludhiana MSMEs held a meeting regarding the burning issues of increased rate of steel in market, sale of iron scrap and problem in withdrawal of new currency.

In the context of increased prices after demonetization, Rajeev Jain, General Secretary, United Cycle and Parts Manufacturers Association (UCPMA) said while addressing that on November 8, 2016 the basic price of Steel ingot was rupees 25300 per ton and on 28-12-16 the price is rupees 28900 per ton.

“In 50 days, price of basic steel gone up by rupees 3600/- per ton and further the primary steel producer are increasing by rupees 6000/- per ton in January 2017, with this increase bicycle industry will be in big problem, it will be impossible to sell the goods in the market which will lead to closure of many units in Ludhiana.” said Rajeev Jain.

It was decided that in this scenario, the bicycle industry is compelled to increase the price of Bicycle and its parts. “The price of bicycle will be increased by rupees 150 to 200 per unit and there will be increase of 6-8% in increase of bicycle parts price from 1st January, 2017 in order to survive,” said in the conference.

It was discussed that when the price of iron-ore is cheaper in India then why there is price increase.

“This is unfair of the government. The steel cartel has totally suppressed the Centre government and is black mailing the Indian economy. MSMR industry is in big problem,” said during the conference.

It was decided that all the members of the association will send written letters to the steel ministry and PM to make Steel price regulatory committee so that undue prices are not increased.
Resentment will be done regarding no serious government and will not support the government which is anti-Industry.

It was also discussed that representation will be send to finance minister regarding free flow of cash to industry. Labour is running away and at present industry is working with 25% labour force. Sales have gone down due to low production which will lead to unrest in the industry due to demonetization.

The meeting was organized at UCPMA under the leadership of Charanjit Singh Vishivkarma (President of UCPMA), Rajeev Jain (General Secretary) and S.Avtar Singh Bhogal & K.K.Seth. (KNN/RAS)


Related Articles


    Be first to give your comments.

Write a Comment

Your email address will not be published.
Required fields are marked *