Bhopal (Madhya Pradesh): The ongoing conflict in Middle East involving Iran, Israel and the US has increased the cost of raw material and exports significantly. This has contributed to rise in prices and consequently, industrialists are struggling to sell their products.
“Polymer prices up 50%, sales decline’
C B Malpani runs Shri Parag Polyplast Industry in Mandideep. His factory manufactures plastic pipes. Interacting with the Free Press, he said that plastic industries needed polymer for manufacturing and its price had shot up by 50%.
As raw material cost had increased, rates of finished products too got increased. The plastic pipe which was earlier sold at around Rs 550 was now being sold at Rs 800. This factor had brought down sales significantly. The big suppliers got polymer from Iran and other Gulf countries and in view of the Gulf war, they were getting the same at high prices, hence the supply rate had also increased.
“Rising costs force firms to hold back exports’ Sharma
Alka Sharma is managing director of Khadyot Naturals private Limited processing sector. Her company, located in Bagrodha of Bhopal has put two international orders on hold as packaging cost has increased by leaps and bounds. She said packaging material to India came from the Gulf countries. Hence packaging cost had increased by 25%.
She said even exports were suffering and added that though the cost of production had increased, old orders had to be supplied at the old rates, incurring heavy losses. She said that industries were also facing the challenge of maintaining liquidity in bank accounts as bank loans were to be paid timely.
Costlier inputs may force units to shut:
Mandideep Industrialist Rajiv Agrawal said that if the supply of LPG and other things was not ensured timely to the industries, then in coming days, many industrial units may shut down. He informed that chemicals which were imported were dearer by 30 % to 50 % after the war broke out in Gulf. This had led to higher cost of finished products and it was becoming difficult to sell them.
Freight surge, detours hit exports hard:
Gautam Kothari, President of Pithampur Industries, Indore, said that the was harrowing as transportation cost had become double or triple. Ships carrying goods for export were taking detours. Sources said that Madhya Pradesh Industrial development Corporation (MPIDC) was being approached by the aggrieved industrialists, demanding solution to their problems. However, the MPIDC could do very little to provide relief to them.
