Industrialists lamented that they are not benefitting from the reduction in the prices of raw materials and advised for the Monitoring Committee to be set up to stabilise prices of raw materials.
Coimbatore: Industrialists have lamented that thousands of micro-entrepreneurs in the Coimbatore district have left their jobs due to volatility in raw material prices in the manufacturing industry, with a few turning to employment in other companies.
The President of the Tamilnadu Association of Cottage and Micro Enterprises (TACT), James said, “In the manufacturing industry, the prices of various raw materials, including steel and aluminum have risen sharply over the past two years. Thus, the micro-entrepreneurs were forced to cope with a great deal of inconvenience. With more than 30,000 micro-enterprises operating in the Coimbatore district alone, the rise in prices has plunged almost all micro-enterprises into crisis.
Work has been significantly reduced due to the current decline in prices and price volatility. Thus, in most companies, the machines have been stopped from operating. Thousands of micro-entrepreneurs have left the Coimbatore district in the course of the past two years due to the crisis. A few of them are working as employees in other companies. In my company, I was forced to sell 3 lathe machines due to an industry crisis. The situation is that bad.
The Central Government should set up a monitoring committee to find a permanent solution to the raw material price problem and to ensure that there is price consistency for at least six months to a year. It is a myth that small businesses will face a crisis if such action is not taken,” reiterated James.
“For the past two years, all raw materials including copper, steel and aluminum have been selling at Rs.50,000 to Rs.60,000 per tonne. But as prices continued to rise, the price of raw materials skyrocketed and was sold at Rs.75,000 to Rs.1 lakh. The Central Government has recently raised the excise duty on raw material exports owing to the fact that small businesses across the country have been making repeated requests to the Central Government.
As a result, the price of all raw materials, including steel has come down to Rs. 8,000 per tonne. Prices are expected to fall further in the coming days. Now we are faced with another crisis where small businesses cannot benefit even if the raw materials are cheap. The reason is that companies that offer jobs have temporarily cut back on that work, believing prices will fall further.
The only permanent solution to the problem of raw material prices is to set up a Central Government Monitoring Committee. Raw materials sales companies that comply immediately every time the price goes up, do not operate at the same pace when prices fall. Small businesses will have no difficulty in getting work if the raw material prices are stable.
Therefore, the Central Government should take steps to set up a monitoring committee comprising entrepreneurs and government officials. That would be the permanent solution to this problem,” suggested Sivakumar, President, Coimbatore Tirupur District Micro and Cottage-Entrepreneurs Association (COTMA).
The President of the Tamilnadu Association of Cottage and Micro Enterprises (TACT), James said, “In the manufacturing industry, the prices of various raw materials, including steel and aluminum have risen sharply over the past two years. Thus, the micro-entrepreneurs were forced to cope with a great deal of inconvenience. With more than 30,000 micro-enterprises operating in the Coimbatore district alone, the rise in prices has plunged almost all micro-enterprises into crisis.
Work has been significantly reduced due to the current decline in prices and price volatility. Thus, in most companies, the machines have been stopped from operating. Thousands of micro-entrepreneurs have left the Coimbatore district in the course of the past two years due to the crisis. A few of them are working as employees in other companies. In my company, I was forced to sell 3 lathe machines due to an industry crisis. The situation is that bad.
The Central Government should set up a monitoring committee to find a permanent solution to the raw material price problem and to ensure that there is price consistency for at least six months to a year. It is a myth that small businesses will face a crisis if such action is not taken,” reiterated James.
“For the past two years, all raw materials including copper, steel and aluminum have been selling at Rs.50,000 to Rs.60,000 per tonne. But as prices continued to rise, the price of raw materials skyrocketed and was sold at Rs.75,000 to Rs.1 lakh. The Central Government has recently raised the excise duty on raw material exports owing to the fact that small businesses across the country have been making repeated requests to the Central Government.
As a result, the price of all raw materials, including steel has come down to Rs. 8,000 per tonne. Prices are expected to fall further in the coming days. Now we are faced with another crisis where small businesses cannot benefit even if the raw materials are cheap. The reason is that companies that offer jobs have temporarily cut back on that work, believing prices will fall further.
The only permanent solution to the problem of raw material prices is to set up a Central Government Monitoring Committee. Raw materials sales companies that comply immediately every time the price goes up, do not operate at the same pace when prices fall. Small businesses will have no difficulty in getting work if the raw material prices are stable.
Therefore, the Central Government should take steps to set up a monitoring committee comprising entrepreneurs and government officials. That would be the permanent solution to this problem,” suggested Sivakumar, President, Coimbatore Tirupur District Micro and Cottage-Entrepreneurs Association (COTMA).