MSME companies are majorly affected by hike in the prices of raw materials.
Coimbatore: In the press release issued by Karthik, the President of South Indian Engineering Manufacturers Association (SIEMA), it has been stated that "At present, the share of Coimbatore pump set companies is Rs. 6,500 crores. Because of this, there are 1 lakh workers who are employed in Coimbatore.
Currently, after the COVID-19 first wave abated and the relaxation of curfew, industrialists seem to be heavily affected by the rise in the prices of raw materials. This makes determining a fixed price for customers.
MSME companies are majorly affected by the hike in the prices of raw materials. They are running at a loss due to lack of current capital and inability to achieve planned production. About 90 percent of pump sets that are sold in India are manufactured by the MSMEs of Coimbatore. The production cost of the best-selling pump sets has increased by 30 percent but the manufacturers have raised the maximum only to 12 percent in the last three months.
Production cost has increased as the price of raw materials has risen by 30 percent and unable to raise commodity prices, MSMEs and companies suffer huge losses. The Central Government must put an end to the export of Steel and Iron Ore and must only allow its import. Action must be taken against hoarders of raw materials, steel manufacturers and traders who cause fake shortages. Banks need to provide 20 percent current capital loan to MSMEs," stated the press release.