LUDHIANA: Worried over the ever increasing rates of the raw material used in making steel, the cycle parts manufacturers of the city organised a meeting at office of Federation of Industrial and Commercial Organisation (FICO) on Sunday. During the meeting, the manufacturers unanimously decided to hike the rates of the chain by Rs 25 per kilogram to Rs 110 per kilogram. The manufacturers have also decided that they will not give more than 30 days of credit to their buyers and all the manufacturers will abide by the decision taken in the meeting.
Giving more information about the latest development, Gurmeet Kular, president of FICO, said, “In the past few months, the rates of various raw material have risen by over 45% which is creating huge problems for the bicycle parts’ manufacturers. Cost of special raw material which is used for manufacturing bicycle chains has risen so sharply that the chain manufacturing factories are on the verge of being shut down due to mounting of losses. In order to save the industry we called for meeting of all the
chain manufacturers associated with FICO and a consensus was made that from today onwards all the manufacturers will sell the chains at not less than Rs 100 per kilogram which is Rs 25 more than previous rates. This has been done so that no businessman faces losses and also they stop competing amongst themselves by decreasing the rates.”
According to Kuljeet Singh, member of FICO, “The meeting was very fruitful as everyone agreed to abide by the decisions taken in the meeting. We have close to 40 such members who are into the business of manufacturing bicycle chains and in addition to fixing the rates at Rs 110 per kilogram they have also decided not to give credit beyond 30 days to their customers.”
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