Foundry MSMEs from South India to go on strike demanding Govt intervention to tackle rising Chinese imports

New Delhi, May 2 (KNN) The foundry industry that comprises of 70-80 per cent MSME units in Coimbatore has proposed to go on a 1-day token strike on May 4^th  against governments inactiveness in addressing their concerns. The industry claims that the cost of manufacturing for the local foundry industry continues to increase, because of which the companies prefer casting imports from China, thus killing the competition for the domestic manufacturers.

Talking to KNN, D. Gandhikumar, MD of Gandhikumar Foundry and also the Former President of CODISSIA said that the situation for the foundry MSMEs in the south is not in good shape.

“Southern India that was once seen as a hub of metal manufacturing and exporting it to various other allied industries such as automobile, it is no more the way it used to be,” he said.

He further explained that the prime problem for this is the unstable energy costs.  “The biggest culprit is the price of coal. The cost of coal that used to be around 27,000 per metric ton, in the last month this has gone up to 40,000-45,000 per metric ton. This volatile pricing hampers the cost of raw material and manufacturing for us,” said Gandhikumar.

Whereas China attracts the buyers at much lower costs, he said adding that the cost difference between the domestic metal and the metal from China is almost 30-35 per cent.

He also informed that the industry associations have been writing to the Ministry officials but their requests go in vain. “The Government seems more interested in Gems and stones industry, our MSME’s requests don’t hit the governments’ door,” he cried.

Considering the alarming state, the Coimbatore foundry industry is to go on a one day strike on 4^th May. (KNN/ DA)