Stainless steel utensil makers face hard times

Stainless steel re-roller units in Jagadhri, a metal town in Haryana that is well-known for its aluminum and stainless steel utensils, are a worried lot.

The decision of the Haryana Government to increase value-added tax (VAT) from 4 per cent to 5 per cent and then levy surcharge on it, has crippled the business for stainless steel utensil manufacturers who are finding it difficult to keep up with their rivals in Rajasthan.

Stainless Steel (SS) utensil manufacturers said business was down by 30 per cent due to the increase in tax on stainless steel utensils.

Stainless steel utensils are manufactured in Jagadhri by around 2,000 units which operate from clusters. Over 95 per cent of the material manufactured by stainless steel re-rollers is supplied to stainless steel utensil manufacturers.

Arkinder Pal Singh Bhatti, president of the Jagadhri Stainless Steel Re-Rollers Association, said steel utensil manufacturers in Rajasthan enjoyed zero VAT and zero Central sales tax (CST) on stainless steel utensils, while in Haryana they were saddled with 5 per cent VAT along with surcharge on it.

Apart from VAT, Jagadhri's SS utensil manufacturers also face an acute shortage of skilled labour. They have demanded that vocational institutes should organise training programmes that will help provide manpower for the industry.