Foundry Daily News

Government urged to ban iron ore export

BANGALORE (India) - There is shortage of raw material for foundries - Over 500 foundries in the State are facing problems

The increasing export of iron ore from Karnataka has had negative impact on foundries here with many facing closure due to rising input costs.

For, the export of iron ore has resulted in the increase in prices of pig iron, the main raw material for the foundries.

Urging the government to ban the export of iron ore and to revive the office of the Controller of Iron and Steel to monitor the prices of iron, Karnataka Foundries’ Association president V. Ramaswamy told presspersons here 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 per cent.

He said exporters were paying less royalty to the Government, but were getting good price from the foreign buyers. “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,” he added.

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.

The Steel Authority of India Limited should take over the production of pig iron and help foundries by supplying it at a reasonable rate.

In a bid to highlight their plight, the Association will take out a procession on April 2 from Mahatma Gandhi Statue to Raj Bhavan and will submit a memorandum to the Governor.

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