Sharp rise in raw material prices hits industries; financial strain likely

Chhatrapati Sambhajinagar

Industries already facing gas shortages due to the ongoing conflict are now witnessing a steep rise in raw material prices nearly one-and-a-half times threatening to disrupt their financial stability, industrialists said.

The city’s industrial estates host a wide range of industries, with a major concentration in the automobile sector, supplying components to leading global manufacturers. Prices of key raw materials such as aluminium, copper, and plastic have surged significantly. Copper prices have risen from Rs 900 per kg a month ago to Rs 1,400, aluminium has increased by Rs 100 per kg, while plastic granules have nearly doubled, said Massia president Arjun Gaikwad. Waluj Industrial Association president Vasant Waghmare said imports of raw materials have declined since the conflict began, leading to shortages. Prices have increased by 25–30% in the past 8–10 days alone. Despite the rise, industries are compelled to procure materials, which will increase production costs and ultimately raise prices of finished goods, directly impacting consumers. Former Massia president Anil Patil noted that industries depend heavily on plastic raw materials, copper, and steel. Plastic granules, a petroleum-based product used in mat manufacturing and exported to Gulf countries, have seen a sharp price rise, along with copper and steel.

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Workers face cooking gas shortage

Migrant workers employed in various industries, who lack registered gas connections and depend on informal supply, have not received cooking gas for the past eight days. With landlords disallowing heaters or electric stoves, workers are demanding gas supply, warning they may return to their native places if the issue is not resolved, industrialists said.