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).