Jamnagar has only one local industry as of now... BRASS INDUSTRY.. but due to Exim policy and competition.. this is also fading away... Vagaries of the international market have taken a toll on Jamnagar's small brass units. This industry in Jamnagar is struggling for life as there is global fluctuation in metal prices, currency and increasing tax burdens.
In last few years with metal prices reached scorching High.
Ramnikbhai Shah, a leading industrialist in Jamnagar says that more then 500 units have shut down because of this metal price uplift, he is a leading brass importer of Jamnagar. he quoted that current price (landing price) of 1 KG brass is Rs 250, however the best rate a local unit can give is Rs. 200.
most of the brass here is imported by Europe, and copper prices are rising very high in Europe and the international market. Fluctuating exchange rates added an insult to injury. Tax structure in local government constitutes of 10% import duty on the raw material, there is also 16% countervailing duty (refundable) + 4% special duty is slammed + 2% cess, this increases the cost of brass by Rs 51 per kg, so sustaining the long term trade is a matter of much concern, adds Amrut Shah ( He is secretary of the Jamnagar Brass Parts Manufacturers' Association).
The ray of hope can be seen if only some tax are relaxed, because small scale manufacturers and processing units cannot take advantage of the government tax schemes, traders are also demanding change in policy and providing centralised warehousing facility for brass imports.
One thing should be noted that this business is the economic lifeline of Jamnagar ( and not the near by big refineries), trade volume of this industry comprises of small players. and small players can not afford to order worth Rs 40 to Rs 45 lakh, this problem can be solved if a government provides central warehousing facility and allow to procure the required raw material from there, this is the only way of survival for the industry.
if this does not happen the industry will soon collapse in Jamnagar, and many will be left jobless in the town.