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Fluctuating fuel prices dangerous for textile units

Jul 07, 2021
Fluctuating fuel prices dangerous for textile units

Coimbatore/Tirupur

As per the industrialists in Coimbatore, the raw material prices are already high due to the lockdown scenario but with the rising fuel prices, raw material prices have risen further. According to M V Ramesh Babu, President, Coimbatore District Small Industries Association, the transportation cost has gone up with the rise in fuel prices, as a large portion of raw materials arrives from Delhi and Mumbai. The association is left with no other option than to increase the prices of the finished goods. He was also worried about the rise in the cost of lubricants and he termed the daily fluctuating fuel prices a ‘slow poison’.

According to J James, District President, Tamil Nadu Association of Cottage and Micro Enterprises (TACT), the association is paying a double amount to suppliers for transporting a tonne of raw materials from Mumbai to Coimbatore, as compared to last year. He also said that with the rise in fuel prices, the cost of transportation from Kolkata has increased from Rs 5,000 to Rs 12,000. He added that many units have reduced the orders by 50 to 60% to manage the ongoing situation.

As per C Sivakumar, President, Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association (COTMA), this rise in fuel prices is taking a toll on the industrial units. The association is forced to shell out a lot due to fuel price hikes.

Source – The Indian Express

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