Rising raw material prices and higher freight and logistic costs due to the West Asia war may put the proposed expansion of a foundry cluster in Bengal at risk, industry participants warned on Friday.

Vijay Beriwal, joint chairman of the Foundry Cluster Development Association, said the industry has lined up an investment of ₹1,500–2,000 crore over the next 12 months. However, the margin compression faced by the industry may put the timeline in jeopardy.

The industry representatives said that foundry-grade pig iron prices increased from ₹40,000 per tonne in January 2026 to ₹45,000 per tonne as on April 10. Freight has increased by 50–60 per cent to the US, Europe and West Asia, while overall logistics costs have increased by 40–100 per cent.

“The pig iron is our primary raw material. Big producers are mostly located in the state. Of late, they are focusing on exports rather than supplying to domestic foundry units and increasing prices frequently. But we are unable to pass on the cost escalation to buyers as orders have been fixed months ago,” Beriwala explained.

Sandip Kejriwal, vice- chairman of Indian Foundry Association, demanded that the Centre put a duty on pig iron ore export. “There used to be a 15 per cent duty before September 2022. It must be re-introduced,” he said.

There are about 350 foundry units in Bengal employing over 50,000 people.