Ludhiana: With the farmers allowing goods trains to run till November 5, the Ludhiana industry has heaved a sigh of relief. But the businessmen are now demanding that manufacturing companies and traders of steel raw material reduce the rates that were hiked during the past one month ever since the farmers’ agitation started.
The rates of raw material for bicycle, sewing machine industry and wire drawing had gone northwards. In some cases, an increase of Rs 8,000 per tonne was witnessed, causing huge resentment among businessmen. The suppliers of the raw material had been citing the rail roko andolan as one of the reasons for the hike as they had to use road transport, which is costlier.
AD Miglani, president of Ludhiana Wire Manufacturers’ Association, said, “Ever since the start of the protest, engineering products’ industries have suffered a big blow as the steel raw material manufacturing companies and their suppliers had hiked the rates exorbitantly. In case of wire rod, which is our essential raw material, the rate was hiked five times by Re 1-kg each time, leading to an overall hike of Rs 5 per kg, which is unjustified. For this hike, we were told that since rail transportation was disrupted, the delivery of raw material was being done by surface transport. So going by this logic, the companies should reduce the rates by Rs 5 per kg now that the goods trains have been allowed to operate.”
Jatinder Nagpal, finance secretary of Ludhiana Sewing Machine Industries’ Association, said, “The rate of pig iron has been hiked by Rs 8,000 per tonne by the companies and brokers on the pretext of rail roko agitation in Punjab. In reality, if the transportation of the raw material is done by road to Ludhiana, the hike will only be of Rs 2,000-Rs 3,000 per tonne, but we are being fleeced. Now when the famers have allowed the passage of goods trains till November 5, the companies and brokers should reduce the rates immediately. We urge the state and the Centre to take note of the issue and order all steel manufacturing companies to reduce their rates.”
Rajesh Bansal, president of All India Tiny and Small Manufacturers’ Association, said, “During the past one month, there has been a huge fluctuation in the rates of cold rolled sheet and cold rolled pipes, which are essential raw materials for the cycle industry. All the suppliers have one excuse to give and that is the goods trains are not able to reach Punjab, causing logistical challenges. If we talk of cumulative increase, then so far, the rates of raw material for our industry have been hiked by Rs 4,000-Rs 5,000 per tonne in the past 20-25 days. Now with the goods trains being allowed to enter Punjab, the rates of all raw material should be brought down at the earliest as we are already suffering huge losses.”