Fabrication units in Tiruchi complain of difficulties in sourcing raw materials
Fabrication units in Tiruchi are struggling to source raw materials like steel plates despite receiving a high volume of orders from BHEL. Industry associations are calling for government intervention due to price fluctuations and supply delays causing financial losses.
Why it matters
Supply chain disruptions and raw material pricing volatility threaten the stability of the MSME sector, which is a critical component of the local industrial economy.
At a time when public sector major, Bharat Heavy Electricals Limited, has been giving out a large volume of orders to its vendors in Tiruchi, the sub-contractors are complaining of difficulties in sourcing raw material, especially steel plates, and fluctuations in the price of raw material.
Fabrication units, which form the backbone of the MSME sector in Tiruchi, say they are facing short supply of raw materials, particularly steel plates of heavy-thickness and other critical materials.
“Sourcing raw material now is very challenging. Functional units are operating over and above their capacities. But some of the private steel manufacturers are seeking 100% payment advance, though SAIL accepts an advance and full payment on delivery,” said P. Senthil Kumar, chairman, BRAMAS Industrial Service Association, which consolidates requirements of raw materials such as plates and structurals and procures them for member units from steel mills.
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