6%-8% increase in bicycle parts expected from 1st January, 2017: UCPMA

Ludhiana: The meeting regarding to three burning issue of bicycle industry on increases rate of steel in market, sale of iron scrap and problem to withdrawal of new currency was held on Wednesday (December 28) in United Cycle and Parts Manufacturers Association (UCPMA) in conference hall under the leadership of Sh.Charanjit Singh Vishivkarma (President of UCPMA), Sh.K.K.Seth, Sh.Rajeev Jain (General Secretary) and S.Avtar Singh Bhogal.
Regarding steel prices Sh. Rajeev Jain told the house that on November 8, 2016 the basic price of Steel ingot was Rs. 25300/- and today 28-12-16 the price is Rs.28900/- in 50 days price of basic steel gone up by Rs.3600/- per ton and further the primary steel producer are increasing by Rs.6000/- per ton in January 2017, with this increase bicycle industry will be in big problem , it will be impossible to sell the goods in the market which will lead to closure of many units in Ludhiana. It was discussed that when the price of iron-ore is cheaper in India then why there is price increase. Why Government has imposed the MIP(minimum Import Price) on steel when India is under WTO. This is unfair of the government. The steel cartel has totally suppressed the centre government and is black mailing the Indian economy. MSMR industry is in big problem and centre Government is quiet. Further the price of scrap is also being black mailed. Companies are buying scrap at the lower price from the bicycle industry.
It was decided that in this scenario, the bicycle industry is compelled to increase the price of Bicycle and its parts. It was decided that price of bicycle will be increased by Rs.150—200/ per unit and there will be increase of 6-8% in increase of bicycle parts price from 1st January, 2017 in order to survive. And if there is increase further in raw material then industry will further increase in same proportion.
Sh. KK Seth said it is time for industry to get together and send representation to the centre government, including Prime Minister and Union Finance Minister. It was decided that all the members of the association will send written letters to the steel ministry and PM to make Steel price regulatory committee so that un due prices are not increased.
Sh. Charanjit Vishkarma said press conference will be addressed taking along all the other associations regarding the undue increase of the steel prices. Resentment will be done regarding no serious government and will not support the government which is anti-Industry.
It was also discussed that representation will be send to finance minister regarding free flow of cash to industry. Labour is running away and at present industry is working with 25% labour force. Sales have gone down due to low production which will lead to unrest in the industry due to demonetization.
Among present were Gurcharan Singh Mankoo, Inderjit singh Navyug, Sh.Rajinder Singh Pappu, Sh.Achru Ram Gupta, Rajinder singh Sarhali, Kupldeep sing Lehra, Jagdev Singh Pardhan, Sh. Dinesh Narang, Tirlochan Singh Mathroo, Sh. Avtar Singh Bhogal, Manmohan Singh Marton, Sh. Sanjeev Bhatia, Sh. Jagmohan singh, Sh. Walaiti Ram , Sh. D.V Gogna, Sh, Swaran darera, Harpal Singh, Sh. Jiwan Sood, Sh Gursewak Singh, Sh. J.K Gulati, Sh. Sachin Jain. H.K Kharbanda, Sh. Manoj Kumar, Kulpreet Malhotra, Gurdeep singh, R.S.Batra, Satinder Singh, Surinder Pal Singh, Surinder singh and Harminder Singh.