Amritsar traders feel heat as steel prices soar: The Tribune India
Tribune press service
Amritsar, June 25
Manufacturers using steel as a raw material are upset because its price has climbed by around 50% in the last four months. Harwinder Singh, who makes weighbridges, said he was forced to pay out of his own pocket as the price of steel rose dramatically.
He said the type of steel used to make the weighbridge costs Rs 78 per kg, including 18% GST. In February, steel cost Rs 48 per kg, he said. “It takes two to three months to deliver an order. Meanwhile, the price of raw materials rises so much that the cost of inputs exceeds profit. How long can I pay 600 employees a salary? “
“The escalating cost of diesel is also reducing our profits. Weighbridges are transported across the country on trucks, ”he said.
City-based manufacturers have said their base investment has skyrocketed due to the rise in the price of steel. Samir Goyal, a manufacturer of hardware products, said demand for these products has fallen sharply after the steadily rising prices of steel and diesel. He said, “The price of steel is rising in the domestic market as iron ore is sold to China.
Goyal said the Center has no policies to support the MSME sector except the provision of loans, which compounds the problem.