Cycle industry feels steel price hike will burden the common man

Shivani Bhakoo

Tribune News Service

Ludhiana, May 8

After the implementation of the Goods and Service Tax (GST), the steel prices have increased up to 30 to 35 per cent in the country.

The government is quiet for the simple reason as it is earning revenue with the increase in prices. But, the common man who has to bear the brunt for ever-increasing prices of steel as the cost of a bicycle has increased up to Rs300. Besides, the cost of construction material has also witnessed a hike of20 per cent.

The experts in the industry said the total revenue from steel has increased up to Rs64,000 crore and there has been 9 crore ton annual production of steel with Rs7,200 per ton GST.

“These figures have been taken from different sites. The government is silent for the simple reason that its income has increased to Rs25,000 crore and the big giants in steel are playing all game. The fasteners are costlier by Rs10 per kilogram. The bicycles are costlier by Rs300 per bicycle. Due to hike in steel prices, the construction material is also costlier. Government is giving incentive on the exports but there are several duties on import of steel. This is also one of the reasons of shortage of steel in India,” said Badish Jindal, president Federation of Punjab Small Industries Association.

Narinder Bhamra, president, Fastner Manufacturing Association of India, said, things are being controlled by China. China never wanted to produce steel as this was polluting their country. They shut their units and our manufacturers started exporting steel to China with the result that there was shortage of steel in India.

“Government is not balancing the import and export of steel in China and other countries because of which we, at our home are bearing shortage while big players are exporting steel overseas. Now back home in India, the prices of steel are being increased further. And there is no regulatory body to control the prices due to which there is a lot of hue and cry and the consumer has to pay the huge prices ,” said Bhamra.

Worst hit businesses

Industries which use steel as raw material - cycle and cycle parts, auto parts, machine tool, hand tools and fastener are worst affected because of hike in steel prices. The industrialists said they were helpless and in the end, the consumer had to bear the pinch of price hike. Fixing prices of the finished products has become a tough task for the industries because of fluctuating price of steel.