The Hindu Business Line : Tractor makers seek Govt help to ease spiralling input costs

FACED with the spiralling prices of pig iron and alloy steel, the Tractor Manufacturers Association has urged the Government to take steps to ease the burden on tractor makers.

It has also requested pig iron and alloy steel manufacturers to take all possible efforts to not only contain further increases, but to bring down the prices to more reasonable levels so that the benefits can be passed on to the farmers.

Commenting on the situation Mr R.C. Jain, President, TMA, said, "Such a steep increase in iron and steel inputs have pushed up the material costs for all tractor manufacturers by 10 to 15 per cent in the last one year and is beyond their capacity to absorb. Inevitably, a significant part of the increase is to be passed on to the farmers."

The association further says that while there has been a Government intervention with members of the Indian Steel Alliance to check the rise in HR and cold-rolled steel inputs, there have been no similar attempts to persuade the pig iron and alloy steel manufacturers to show restraint. Prices of pig iron have risen by about 60 per cent in 2003 and by a further 74 per cent in the first three months of 2004.

Pig iron and alloy steel are major inputs in the manufacture of tractors constituting around 67 per cent of the total material cost. Prices of tractors are already believed to have increased by 2-3 per cent since April this year.

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