October 12, 2008

Foundry industry seek ban of iron ore export to China

It is reported that India’s foundry industry has urged the centre to impose a ban on iron ore export to China so as to arrest a massive unemployment problem.

Mr Jagadeesan chairman of Institute of Indian Foundrymen said that "Though China is the major benefactor of iron ore exports from India, they do not export coke to India as the Chinese government is encouraging export of components and finished goods only. The finished products of iron ore coming out of China cost 25% less than those from India. This affects Indian exports."

He added that "International customers do not appreciate the changes in price very often. This puts the foundry industry at a heavy loss.''

Mr Ilango VP of Coimbatore District Small Industries Association said that China is trying to destroy the Indian market and stressed that the government should either ban or control exports.

Coimbatore, being one of the largest foundry centers with 600 foundries and over 100,000 people employed, bears the brunt as the cast iron export has come down last year. It produces about 500,000 tonnes and exports cast iron worth INR 1,000 crore per annum.