Inflation hits Ludhiana oil expeller machinery hub | SupportBiz

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Inflation hits Ludhiana oil expeller machinery hub

 
Inflation is leading to slowdown in the industry producing oil expeller machinery and its parts in Ludhiana. The manufacturers in the industry are facing problems in securing orders, and then, meeting them on time.

There are over 150 micro units in the industry,  manufacturing of oil expellers and their parts. It employs over 2,000 people, and has  a collective annual turnover of Rs. 15 crore.

“The rising prices of almost everything that is used in running an industry is creating problems for the  manufacturers. Not only have the prices of  raw material  increased, but the prices of the electricity supply  and upgraded machinery used for testing  products have also increased,” said Kanwarjit Singh, a manufacturer.

“Even  low-skilled labourers  demand  higher wages,  leading to  low productivity    and higher rejection rates,” he said.

“ Inflation is also leading  to  slower upgradation of technology and poor working conditions.  Even the government has  increased  VAT, and  loans are not   available at lower rates of interest,” said Maninderpal Singh, another manufacturer.

“ The  industry is doing well in terms of exports,  but  inflation is causing it to lag behind in growth, ” Singh said.

“The state government should support the industrialists by decreasing the rate of interest on  loans, enabling them   to equip their firms with  better infrastructure,” he said.