May 17, 2008

Karnataka foundries urge for banning iron ore export

BL reported that the increasing export of iron ore from Karnataka has had negative impact on foundries with many facing closure due to rising input costs as it has resulted in the increase in prices of pig iron, which the main raw material for the foundries.

Mr V Ramaswamy president of Karnataka Foundries’ Association president told presspersons that over 500 foundries operating in Karnataka and employing over 60,000 people had been facing problems as the prices of pig iron has gone up by 40%.

He said that exporters were paying less royalty to the Government, but were getting good price from the foreign buyers. He added that “This had led to acute shortage of raw material for foundries threatening their closure. Foundries in India are not in a position to meet the demand owing to sudden increase in prices of raw materials.”

Mr Ramaswamy said the Union Government should come to the rescue of foundries by banning the export of iron ore and prices of pig iron should be fixed for the secondary producers.