Sharp increase in raw material prices hit MSME units hard
December 11, 2020
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The MSME units in the foundry and engineering space are in a fix, caught between abnormal increases in the price of raw materials on the one hand and order enquiries coupled with labour shortage on the other.
“The last three months have been terrible. The situation is worsening by the day; we are unable to schedule production,” say unit owners, urging immediate government intervention to bail them out of their present imbroglio.
“Both the Centre and State should step in without further delay. If the situation persists for another month or so, we will have to shut operations,” said K V Karthik, Managing Director, Deccan Industries and president, the Southern India Engineering Manufacturers’ Association (SIEMA).
Industry association heads plan to meet Union Minister
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AAA Representatives of industrial associations in Coimbatore plan to meet the Union Steel Minister shortly to explain the problems faced by Micro, Small, and Medium-scale Enterprises (MSMEs) because of the exponential rise in raw material prices in the recent weeks.
Heads of the associations that are part of the Joint Council of Associations of Coimbatore told press persons here on Thursday that industries will not be able to continue operations if the price increase continues for a month more.
According to them, prices of steel, copper, stainless steel rods, AMINE gas, PVC resin, aluminium have all increased multi fold.