The rim axle industry is facing a crisis

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Baraut (Bagpat). The city’s rim axle industry is currently in a crisis due to the rise in iron prices. Last year the price of iron was 35 rupees, which has now risen to 70 rupees per kg. The costs have increased due to the price increase. This is the reason why entrepreneurs also work up a sweat when purchasing raw materials. At the same time, due to the demand of only 15 to 20 percent, goods in the millions are rusting in godowns, and millions of rupees are also stuck in the market. Now the entrepreneurs are waiting for relief from the government.
Goods worth 50 crores rust in the godowns
There are around 110 wheel axle factories in the city. According to entrepreneurs, the goods worth around 50 crores in the godowns of the rim axle industrialists are on the verge of being spoiled by rust with negligible demand. At the same time there are around 20 million entrepreneurs on the market. If we talk about the average loss, so far the district entrepreneurs have suffered a loss of around 210 crores and yet the situation is not expected to be normal.
Product prices rose by 25 to 40 percent
Barot. The prices for rim aftermarket products have risen by 25 to 40 percent. Kapil Panwar, a Rim-Dhura-affiliated entrepreneur, said the 12kg rim, which used to cost 900 rupees, is now around 1100 rupees. The cost of a commonly used axle has also increased from Rs 2100 to Rs 2,600.
Farmers are also hit
The district’s rim axle production is also used for agricultural vehicles. It includes wheels and axles that are used in buggies, trolleys, etc. Since they are expensive, their effect also reaches the farmers. The sugarcane transport season recently ended, now it is the transport season for other crops, including Jowar. This is why farmers need a lot of rim axles.
Iron is exported abroad
Amarchand Jain of Hero Industries says that after the Corona period, demand for iron increased overseas. Because the iron supply from many countries to European countries has ceased. Therefore, iron is imported from India itself. Because of this, companies have started exporting iron, which has led to an increase in iron prices in India.
Here is the supply of goods
From here, in addition to Nepal, Bangladesh, Sri Lanka, rim axles are delivered to Gujarat, Maharashtra, Orissa, UP, Chhattisgarh, Bihar and other places in the country.
These entrepreneurs said
The Indian Industries Association division secretary, Dr. Yogesh Jindal and Adarsh ​​Jain say the backbone of the rim axle industry has been broken due to the rise in iron prices. There is already a recession due to GST and lockdown. The government should pay attention to this.
Kapil Panwar, owner of Kapil Agro Industries, and Arpit Jain aka Tinu of Anil Industries said business was impacted by the rise in the price of iron. I was told that with the gradual end of the Corona curfew, most factories had now received orders, but now, due to the sudden increase in iron prices, costs have risen sharply. So the supply is negligible. The industry has lost lakhs in the last week due to the lack of supply.

Baraut (Bagpat). The city’s rim axle industry is currently in a crisis due to the rise in iron prices. Last year the price of iron was 35 rupees, which has now risen to 70 rupees per kg. The costs have increased due to the price increase. This is the reason why entrepreneurs also work up a sweat when purchasing raw materials. At the same time, due to the demand of only 15 to 20 percent, goods in the millions are rusting in godowns, and millions of rupees from entrepreneurs are also stuck in the market. Now the entrepreneurs are waiting for relief from the government.

Goods worth 50 crores rust in the godowns

There are around 110 wheel axle factories in the city. According to entrepreneurs, the goods worth around 50 crores in the godowns of the rim axle industrialists are on the verge of being spoiled by rust with negligible demand. At the same time there are around 20 million entrepreneurs on the market. If we talk about the average loss, so far the district entrepreneurs have suffered a loss of around 210 crores and yet the situation is not expected to be normal.

Product prices rose by 25 to 40 percent

Barot. The prices for rim aftermarket products have risen by 25 to 40 percent. Kapil Panwar, a Rim-Dhura-affiliated entrepreneur, said the 12kg rim, which used to cost 900 rupees, is now around 1100 rupees. The cost of a commonly used axle has also increased from Rs 2100 to Rs 2,600.

Farmers are also hit

The district’s rim axle production is also used for agricultural vehicles. It includes wheels and axles that are used in buggies, trolleys, etc. Since they are expensive, their effect also reaches the farmers. The sugarcane transport season recently ended, now it is the transport season for other crops, including Jowar. This is why farmers need a lot of rim axles.

Iron is exported abroad

Amarchand Jain of Hero Industries says that after the Corona period, demand for iron increased overseas. Because the iron supply from many countries to European countries has been discontinued. Therefore, iron is imported from India itself. Because of this, companies have started exporting iron, which has led to an increase in iron prices in India.

Here is the supply of goods

From here, in addition to Nepal, Bangladesh, Sri Lanka, rim axles are delivered to Gujarat, Maharashtra, Orissa, UP, Chhattisgarh, Bihar and other places in the country.

These entrepreneurs said

The Indian Industries Association division secretary, Dr. Yogesh Jindal and Adarsh ​​Jain say the backbone of the rim axle industry has been broken due to the rise in iron prices. There is already a recession due to GST and lockdown. The government should pay attention to this.

Kapil Panwar, owner of Kapil Agro Industries, and Arpit Jain aka Tinu of Anil Industries said business was impacted by the rise in the price of iron. I was told that with the gradual end of the Corona curfew, most factories had now received orders, but now, due to the sudden increase in iron prices, costs have risen sharply. So the supply is negligible. The industry has lost lakhs in the last week due to the lack of supply.

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( News Source – Amar Ujala )

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