Small and micro businesses affected by rising raw material prices: Central and state governments urged to intervene
Coimbatore: MP PR Natarajan urged that central and state governments to intervene as the small and micro businesses are affected by rising raw material prices. In a press release he said, the sharp rise in raw material prices has pushed small businesses to the brink of extinction. As a result, molding businesses in Coimbatore have been on indefinite strike for the past four days. About 2 lakh workers working in it have been affected.
He said, "It is shocking and worrying that the central and state governments are not moving in this regard. It is obvious that they are engaged in this strike because they have been pushed into an unmanageable crisis. The price of raw materials for the molding industry has risen by up to 30 percent. An important demand is already pending that is to reduce the GST on job orders to 5 per cent. The uncontrolled rise in the price of these raw materials has affected not only the casting industry but all the related industries. And in the face of this crisis, molding industry entrepreneurs are announcing price hikes and producing products that will directly affect the consumers and public."
He also added that, "The price of raw materials goes up every day like the price of gold. The demand to control this is 100 percent reasonable. And their fear of being deliberately stockpiled and shortage due to artificially inflation. The central and state governments are responsible to answer the question raised by entrepreneurs as to why the central government should openly declare why prices are rising."
In his statement he further added, "As a MP for Coimbatore, I express my full support for the demand of small entrepreneurs who are leading the protest for a just cause. The Central Government should clarify the export and import policies of raw materials. A study committee should be set up for this. The central government should immediately listen to the demands of entrepreneurs. The coronavirus threat and the lockdown has led to the closure of factories for about eight months, leaving workers jobless. The workers will be severely affected as factories are currently closed due to rising raw material prices. Currently, there are reports that small businesses will join the strike as the next stage of the molding entrepreneurs' protest. As a result, more than 5 lakh workers will be severely affected if more than 20,000 factories in Coimbatore district alone are closed. Central and state governments must take immediate action to curb this inflation. I urge you to meet the reasonable demands put forward by entrepreneurs."
He said, "It is shocking and worrying that the central and state governments are not moving in this regard. It is obvious that they are engaged in this strike because they have been pushed into an unmanageable crisis. The price of raw materials for the molding industry has risen by up to 30 percent. An important demand is already pending that is to reduce the GST on job orders to 5 per cent. The uncontrolled rise in the price of these raw materials has affected not only the casting industry but all the related industries. And in the face of this crisis, molding industry entrepreneurs are announcing price hikes and producing products that will directly affect the consumers and public."
He also added that, "The price of raw materials goes up every day like the price of gold. The demand to control this is 100 percent reasonable. And their fear of being deliberately stockpiled and shortage due to artificially inflation. The central and state governments are responsible to answer the question raised by entrepreneurs as to why the central government should openly declare why prices are rising."
In his statement he further added, "As a MP for Coimbatore, I express my full support for the demand of small entrepreneurs who are leading the protest for a just cause. The Central Government should clarify the export and import policies of raw materials. A study committee should be set up for this. The central government should immediately listen to the demands of entrepreneurs. The coronavirus threat and the lockdown has led to the closure of factories for about eight months, leaving workers jobless. The workers will be severely affected as factories are currently closed due to rising raw material prices. Currently, there are reports that small businesses will join the strike as the next stage of the molding entrepreneurs' protest. As a result, more than 5 lakh workers will be severely affected if more than 20,000 factories in Coimbatore district alone are closed. Central and state governments must take immediate action to curb this inflation. I urge you to meet the reasonable demands put forward by entrepreneurs."