Cycle rates see nearly 35% jump in a year
LUDHIANA: The ever-affordable ride of the poor man, bicycles, has witnessed a 30 to 35 percent increase in prices over the last one year due to the soaring cost of steel, making this ordinary mode of transport out of reach for many, especially the labourers.
The rise in prices has also made the most common traditional black cycles unaffordable for some. They are purchased mostly by the lower middle class and a large number of labourers employed in factories in Ludhiana.
At this time last year in 2021, the price of a traditional black cycle ranged between Rs 3,500 to Rs 4,000.
The price varies depending upon the brand and the accessories bought with the bicycle. The same bicycle now costs Rs 4500 to Rs 5,000, showcasing an increase of almost 30 percent over the year.
According to Onkar Sigh Pahwa, managing director of Avon Cycles, the price rise has been gradual over the last year but is such that it pinches the poor man.
“For a common man, even a hike of Rs 100 for a bicycle is a lot. Bicycle was considered affordable, but with rising steel prices the going has been tough for the poor man,” he said.
KK Seth of Neelam Cycles in Ludhiana said the prices of cycles increased by Rs 100 twice in the last fortnight- on March 21 and then on April 1. “There is no let down in rising prices of steel. The raw material cost is huge,” he said.
Seth added that never has been the price hike been so steep. “Earlier, the prices used to increase by Rs 40 or 50 at the most, now the hike is always minimum of Rs 100 and has become so frequent,” he said.
Ludhiana accounts for nearly 90% production of cycles in the country. The prices of steel have been hiked by around Rs 20,000 per tonne of steel in the period ranging from January 2021 to March 2022, compelling the industry to purchase steel and iron at renewed prices, said Badish Jindal, President, Federation of Punjab Small Industries Association (FOPSIA). The steel price escalation in India started in the second half of 2020-21 and has continued unabated, except for a slight dip in February.
The state industry has been protesting against the rising prices of steel. While the increase in prices is being linked to the Russia-ukraine War, many refuse to buy the theory and blame it on cartelisation.
Another factor for the production of steel getting expensive is the expected increment in the prices of coking coal being approximately 20 per cent. India is dependent on export for coking coal to an amount of 25 - 85 per cent.
SK Rai, Managing Director of Hero Cycles, said the situation is not in favour of the buyers as the labourers are feeling the pinch of the rising costs. “Fuel is already unaffordable for them, the labour relied on bicycles and the rising costs are a dampener,” he said.
Vanshaj Chhabra of Chhabra Cycles on Pakhowal road said the rising costs have affected sales. “Every time there is a hike, it affects affordability,” he said.
The situation is not in favour of the buyers as the labourers are feeling the pinch of the rising costs. SK RAI, managing director, Hero Cycles