- January 12, 2022
- Posted by: admin
- Category: News & Atricles
MSME affiliation AICA looks for govt. mediation to lower unrefined substance costs
The All India Council of Association of MSMEs (AICA) asked the government to make immediate efforts to reduce raw material prices. Additionally, the association announced a one-day shutdown of all industries on December 20 and a one-hour peaceful demonstration in front of the respective Collectorates/District Magistrate Offices to push for an intervention by the Prime Minister to reduce raw material prices.
There will be a loss of Rs 25,000 crore in production if lakhs of MSMEs are closed across India for a single day, according to the report.
Small and medium-sized businesses contribute about 30% to the GDP and 48% to exports.
“The continuing rise in raw material prices for reasons unknown are of grave concern to all MSMEs in India.
“This alarming matter has been brought to the attention of the Hon’ble Prime Minister and other Ministers in the Union Government through memoranda with a request to control raw material prices, but unfortunately, nothing has been done, and the situation of the MSMEs is deteriorating continuously,” the letter said.
According to the association, MSMEs cannot carry out orders taken at lower prices due to this problem.
In addition, it proposed that all raw materials be fixed at a maximum retail price (MRP).
In addition to a safeguard against escalation, the association urged that NSIC serve as a consolidation agency and that MSMEs be able to hedge steel easily.
“It recommends that a formula be developed for the escalation of steel prices. SAIL / Steel Industry must publish steel prices of Long products, Flat products, and HRC coils on a quarterly basis, maintaining the price for a period of a minimum of three months at a stretch,” it maintained.