Ludhiana's cycle industry feel Chinese pressure

Ludhiana, Apr 22 (UNI) The Indian bicycle industry centered in this industrial city of Punjab has not only been hit by the rising steel and nickel prices, but also the cheap Chinese made cycles.

Exports of cycles which were around Rs 900 crore annually about two to three years back have slumped to Rs 470 crore in the last fiscal year, says, former President of the United Cycle Parts Manufaturers Association Joginder Kumar.

Maintaining that the cycles made here were still the best, Mr Kumar who remained the president of the association for five years lamented that the government did nothing to protect the interest of the cycle and cycle parts industry, which is the 'Sunrise Industry'' of Ludhiana. The Chinese made cycles may not match the quality of Indian cycles, but they are cheap in the international market as the production cost involved was far less than the cycles made here, he added.

Refering to the government policies, Mr Kumar pointed out that the import duty on scrap (steel) which had been done away with two years back had again been introduced and was now at five per cent.

Likewise the government had not conceded to the demands of the cycle industry to do away with the 10 per cent excise duty on refined steel and five per cent on secondary or defective steel, he said while pointing out that such measures esclate the production cost that in turn pushes up the product cost.

The cycle and cycle parts manufacturers here also face labour problems as well as power cuts, which are not there in China, he said. The industry here wants assured power supply, Mr Kumar who is also a member of the Commission on Entreprises in the Unorganised Sector said.

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