GSIA seeks Govt. of India’s intervention in price surge of raw materials denting MSME sector, including aluminium

The steep rise in raw material prices is denting micro, small and medium enterprises (MSMEs) and govt. of India should entail immediately to intervene through policy decisions, said Goa State Industries Association (GSIA).

Along with 170 MSME associations across India, GSIA has written to Narendra Modi, the Prime Minister of India, articulating disquiet over the unstable situation that can seed a permanent dent in the Indian MSME sector.

The sector bodies have enlightened the government that despite the demand plunge due to lockdown restrictions in multiple states, prices of raw materials, especially aluminium among others are soaring.

The associations have joined under the roof of the All India Council of Association of MSMEs (AICA) and have written to the Prime Minister seeking his intervention, however, copies of the letter have also been delivered to the finance and corporate affairs minister Nirmala Sitharaman, MSME minister Nitin Gadkari, minister for steel Dharmendra Pradhan and others.

Damodar Kochkar, President, GSIA said: “GSIA is joining hands with all other MSME associations across India requesting the government of India to intervene in this situation of price increase of basic raw materials.”

Kochkar said: “The Centre should control the price of raw materials for a specific period and also that it needs to provide additional funds through a scheme to meet the working capital requirements of MSMEs.”

The joint representation sent to the government, said: “MSMEs are not able to execute orders taken at a much lower price. They face the uncertainty of getting black-listed by PSUs and large corporates if they don’t honour contracts.”

source https://www.alcircle.com/news/gsia-seeks-govt-of-indias-intervention-in-price-surge-of-raw-materials-denting-msme-sector-including-aluminium-67681