India - Foundries demand import duty cut on key raw materials

Issued at 2020-12-29

Hit by surging input costs, the foundry industry in the country has demanded reduction of import duty for pig iron and other raw materials, an official said on Friday. Prices of pig iron and other raw materials for the industry have gone up by 30-50 per cent, Institute of Indian Foundrymen (IIF) president Vijay S Beriwal said. The industry body has also sought subsidies on power from the government to stay competitive in the global markets. “Steel prices have increased by 30-50 per cent in the last 5-6 months and foundry chemicals have become expensive by 15-20 per cent,” Beriwal said.

Compared to other countries, the cost of power in India is high, which is hurting the energy-intensive foundry industry, he claimed. “Energy cost accounts for 15-20 per cent of the manufacturing expense, which is the highest. The Chinese government had extended a 10 per cent incentive to their units before the COVID-19 pandemic and again 5 per cent after the crisis.

Such measures were proposed by the foundry industry in India,” Beriwal said. The high input cost has an adverse impact on the USD 3-billion foundry exports from India and makes units uncompetitive in the international markets, he said.