Pig iron surge cripples foundries

The unprecedented increase in the pig iron prices has affected the export oriented foundry units of West Bengal very badly.

Out of around 60 units of the state, 12 were forced to shut down and 25-30 units were operating at 50 per cent of the capacity.

According to Rakesh Shah, chairman, EEPC, the foundry units operational in the sate exported 2.5 lakh ton of casting in the last fiscal and this could decrease to around 1 lakh tonnes under the current price pressure.

Subsequently this could also mean a displacement of around 50000 workers who are engaged in direct employment.

"As of now around 10000 people have been affected and this number could go up 5-7 times in a couple of months if the current trend continues," he said while talking with the media.

In the last 10 months the prices of the pig iron has increased by 40 percent which not in sync with the global trends.

Shah also added that the US made castings has become much cheaper compared to the Indian counterparts on the account of the rising prices.

"While US made castings cost around 40-45 cents par pond, the Indian castings are priced at 40 cents par pound, so this has led to loss in the US markets which constitutes 80 percent of the exports," he explained.

Accordingly the council has recommended to the Union government to intervene and prevent the market failure that has arisen in the country due to the oligopolistic practices by a few suppliers.

Likewise the council has demanded an export duty in the tune of 25 percent on all categories of steel and pig iron products.