The ongoing Iran conflict has begun to impact industrial supply chains, leading to a shortage of key raw materials and a steady rise in input costs over the past few days.
With global logistics disruptions and volatility in energy-linked commodities, industries across Tamil Nadu are worried about sustaining production and maintaining business operations.
On Wednesday, industry associations, heads of chambers of commerce, and key companies met officials from the State government and expressed their concerns.
“Copper price has risen significantly. Earlier, it was selling at ₹800–₹900, depending on the quality, but it is now priced between ₹1,300 and ₹1,450. The new challenge we are facing is sourcing steel and aluminium scrap, used for melting and reconversion into components. These materials are sourced from the Middle East (West Asia),” said R.V. Chari, chairman, CII Chennai zone, and Managing Director, GH Induction Limited.
R. Vasudevan, president of Tamil Nadu Small and Tiny Industries’ Association, said: “Approximately 2.5 lakh small and micro industries are dependent on LPG for their operations. The shortage has impacted businesses such as container assembling, auto ancillary units, ship building repair, and engineering steel structures.”
