Industry associations in the region have expressed solidarity with the call by All India Council of Association of MSMEs (AICA), an umbrella body of 170 MSME associations, for closure of production units across the country on December 20 to protest against the spiralling cost of input materials.
The associations have resolved to stage a hour-long demonstration in front of the Collector’s offices seeking Central government's intervention to check the escalating costs of raw materials.
Expressing grave concern, the Tiruchi District Tiny and Small Scale Industries’ Association has given a call to affiliated associations for the protest. The MSME sector being next only to agricultural sector in terms of employment generation, it should be safeguarded from the impact of escalating costs of raw materials, TIDITSSIA functionaries said.
The Perambalur District Small and Tiny Industries Association (PEDSTIA) has also given a similar call to its members for participation in the protest in front of the Collectorate. According to PEDSTIA functionaries, there is an imperative need for formation of a committee consisting of government officials and MSME representatives to arrive at the cost of input materials.
According to small industry associations, the spiralling price of raw materials has severely affected the production and working capital. The associations expect the Central government to direct the original equipment manufacturers (OEMs) to compensate the MSMEs for the higher input costs.
The AICA has demanded that the cost of raw materials be brought to the level of April 2020 prices, and has called upon public sector enterprises to accept cancellation of orders from MSMEs without putting a penalty or blacklisting them. MSMEs have been pushed into a helpless situation in the backdrop of the steep increase in price of steel, the AICA has pointed out, calling for the nation-wide protest.
Published - December 17, 2021 08:20 pm IST
