Representatives of MSMEs, who had gathered in Chennai to protest against the rising raw material prices, said that if the cost did not come down, it would not be possible to continue in business.
They requested the Centre to take steps to bring down the prices of raw material to April 2020 levels. They pointed out that steel manufacturers should reserve 40% of their capacity for MSMEs and supply the goods at concessional prices.
Tamil Nadu Small and Tiny Industries Association general secretary V. Nithiyananthan said the price of mild steel plate, which was ₹45 in April 2020, had now gone up by over 82%, cost of aluminium alloy, which was ₹106 last April, is now sold at ₹270.
The price of key raw material like copper, engineering plastic and kraft paper among others had doubled over the last one year burdening the MSME units.
MSMEs suggested that the government should allow the import of all raw material such as steel, aluminium, and copper at nil customs duty. They said that anti-dumping duty should be abolished for steel. “All MSME contracts to government entities and PSUs to be re-negotiated for raw material price escalation. Price escalation cause should be included in all contracts to MSMEs,” Mr. Nithiyananthan said.
“Sudden price rise after the pandemic that too when there is no increase in demand clearly shows that it is artificial and pure cartelisation among the basic raw material manufacturers,” said K.S. Anbuselvan, president, Perungudi Industrial Estate Manufacturers’ Association.
Members of the Thirumudivakkam Industrial Estate said that sustaining the business had become a concern due to erosion of working capital on account of huge rise in raw material prices. Same was the case with the unit owners at the Kakkalur Industrial Estate.
Representatives from all the industrial estates who participated in the demonstration in Chennai have sent a letter to the Union government explaining their plight.
