The hike will also be applicable to fancy bicycles. Apart from hike in various varieties of steel in the range of Rs 1,000- Rs 5,000 per metric tonne in the past four months, another hike is expected by the end of this month.

Confirming the hike, Avon Cycles Managing Director Onkar Singh Pahwa said, “We have worked out the details. In a bicycle weighing 20 kg nearly 18 kg steel is used. Hence, we cannot afford to sell our product at old prices. At least Rs 50 per bicycle will be increased from February 1 on all our models.”

Avon Roadster bicycle (black cycle) including all taxes and accessories costs around Rs 1,725 but now it will cost Rs 1,775 from the next month while Hero Roadster will be sold at Rs 1,800, an increase of Rs 50.

Sources from Hero Cycles also confirmed that they are planning to increase the prices.

Speaking about the hike in the steel prices, PD Sharma, President, Apex Chamber and Commerce Industry, said, “The hot rolled coil prices are Rs 29,000 per metric ton and hence it is Rs 4,000 per metric ton increase in the past four months. In addition to this, even round steel prices increased by Rs 5,000 per metric tonnes in just one month. Its present price is Rs 34,000 per metric tonne.”