Business Bureau :
In the span of one year, the prices of raw material have increased stupendouly thereby escalating the final product cost. The table shows the comparative prices of the raw material in kilogram. “Most of the companies are realizing good profits which are exhibited from their share prices on the bourses,” said CA Milind Kanade, Vice-President of Butibori Manufacturers Association.
Table shows comparative prices of raw material in kg
Members feel that increase in prices of metals is due to export of metal from India. After discussions with industrial fraternity to control the rising prices of raw material, it is nesessary –1) To purchase raw material in bulk through NSIC. 2. Inclusion of raw material price escalation clause in tender document itself. One has to understand that escalations of prices of raw material are not always under Government control. Yes, Government can introduce subsidies to deal with crisis scenario. 3.The restrictions on exports till the raw material prices attain normalcy. 4. Increase in the supply of metal in the market, by revamping metal production capacities. 5. Provision of non-fund based credit facilities for procurement of raw material on deferred payment basis by the bankers.