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Indian engineering exports hit by increasing raw material prices

Steel prices have increased from Rs 35,000 per tonne to Rs 42,000 per tonne in the past six months for a product like hot rolled coil, an essential raw material for engineering industry.

Indian engineering exports hit by increasing raw material prices
Steel prices have increased from Rs 35,000 per tonne to Rs 42,000 per tonne in the past six months for a product like hot rolled coil, an essential raw material for engineering industry.

Rising steel and other metal prices coupled with the second wave of Covid pandemic has crippled India’s engineering exports, EEPC India, the apex body of engineering exporters, said and sought the intervention of the commerce ministry to address the issue.

Steel prices have increased from Rs 35,000 per tonne to Rs 42,000 per tonne in the past six months for a product like hot rolled coil, an essential raw material for engineering industry.

Prices of other metals like zinc have risen from Rs 170 a kg to Rs 220 a kg, resulting into the hike in prices of end-products. Freight charges have almost doubled due to which exporters of engineering goods are facing severe headwind.

There is also a scarcity of steel in the market, EEPC India chairman Mahesh Desai said, adding major European markets are witnessing a second wave of coronavirus while the US is reeling under the deadly impact of the pandemic.

“We urge the government to take up these issues to stabilise raw material prices,” he said. India’s engineering exports have declined by 14% from $44.43 billion during April-October FY20 to $38.14 billion in the same period of the current fiscal. The down trend has not yet been under control, a EEPC India statement said.

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First published on: 19-11-2020 at 03:30 IST