Ludhiana, March 21: Industrialists in Ludhiana have expressed deep concern over a sharp spike in fuel and input costs, which they state is jeopardizing the operations of the state’s manufacturing sector. Following recent international conflicts, the prices of essential petroleum products—including furnace oil, petcoke, and light diesel oil—have increased by nearly 25 percent over the last three weeks, creating significant hurdles for the forging and casting industries.
Pankaj Sharma, president of the Association of Trade & Industrial Undertakings (ATIU), stated that the unpredictable nature of these cost hikes makes it nearly impossible for units to plan their production cycles. He noted that the ripple effects are likely to disrupt the supply chains for bicycle parts, auto components, and agricultural equipment. Industry leaders declared that without immediate relief, the volatility could prove disastrous for the region’s economic health.
The crisis is particularly acute for those fulfilling government contracts. Raghav Mittal, a key supplier to the Indian Railways, affirmed that executing orders at previously contracted rates has become unviable. He maintained that tenders finalized under lower cost assumptions cannot account for the sudden surge in raw material and energy expenses, leading to a standstill in production for several essential departments.
The World MSME Forum has also voiced strong opposition to a recent 22 rupee per litre increase in direct bulk diesel supply to industries. Badish Jindal, president of the forum, asserted that this hike would significantly raise both transportation and electricity generation costs. He stated that the government must recognize the industry as a priority sector to safeguard employment and revenue.
