Abnormal price hike of raw materials very badly hit industry sector: CODISSIA submits representation to central ministers

Coimbatore District Small Industries Association (CODISSIA) has made representations to central ministers regarding the abnormal price hike of raw materials and has requested urgent, immediate action.


Coimbatore District Small Industries Association (CODISSIA) has made representations to central ministers regarding the abnormal price hike of raw materials and has requested urgent, immediate action.

CODISSIA President, R. Ramamurthy in a press release has said, "MSMEs have already suffered due to the impact of COVID-19 and in addition, this is a big blow to MSMEs with heavy increase in prices of raw materials due to which MSMEs are facing with cancellation of orders, uncertainty of consumption in the market and declining of exports etc.

Finance Minister sanctioned an additional 20% loan to MSMEs through banks under the Guaranteed Emergency Credit Line Scheme under Aatma Nirbhar Bharat, which was completely absorbed due to the steel price increase. Coimbatore is a manufacturing hub powered by MSMEs and caters to the manufacturing of pumps, motors, compressors and many other products in addition to being in valves and automobiles sector."

"Business Industries across the country are slowly returning to normalcy in the unlock phase. The prices of Steel and other allied Foundry items like Coke, Pig Iron, cast iron, steel Scrap, CI Boring, HR Sheet, CR Sheet, Copper and Aluminum, have increased by 30% to 35% post lock down due to COVID-19. Steel prices have increased from Rs.37,000 per tonne to Rs.47,000 per tonne in the past six months and the trend seems to be increasing continuously for steels, plates, angles etc.

This has affected all the MSMEs that manufacture end products and those which operate under Annual Rate Contract, to complete their orders. Thousands of Micro, Small and Medium industries engaged in manufacturing activities using steel and allied raw materials, are badly affected, in not being able to keep up their commitments or to secure fresh orders for manufacture and supply. we request the Government to fix the MRP price."

"The SAIL yard which was functioning in Coimbatore was closed in 2015 for want of construction of railway over bridge and even after having completed the construction work in 2017, the SAIL yard in Coimbatore is yet to be opened. Since then we have been giving various Representations to consider reopening SAIL yard in Coimbatore."

"On behalf of our association we have submitted representations to Dharmendra Pradhan, Minister for Petroleum and Natural Gas and Steel. Also to Nitin Jairam Gadkari, Minister for MSMEs and Nirmala Sitharaman, Minister of Finance and Corporate Affairs and Office of the Prime Minister, Government of India, New Delhi. The Micro, Small and Medium industries will cease to exist, if necessary corrective action is not directed from the Ministry on the increasing prices of raw materials and other allied materials."

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