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LATEST NEWS UPDATES | MSMEs hit by Raw Materials’ Price Rise, Entrepreneurs Down Shutters in Protest -Neelambaran A

MSMEs hit by Raw Materials’ Price Rise, Entrepreneurs Down Shutters in Protest -Neelambaran A

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published Published on Dec 20, 2021   modified Modified on Dec 21, 2021

-Newsclick.in

After facing severe setbacks due to demonetisation, hasty implementation of GST, and the ill-conceived COVID-19 lockdown, the MSMEs are gasping due to a steep rise in raw material prices.

In a first, the entrepreneurs of the micro medium and small enterprises (MSME) went on a one-day strike across the country on Monday. Affected severely by the policies of the Union government, the ill-planned lockdown in March 2020, and now by the steep increase in raw materials, the All India Council of Association of MSMEs (AICA), with around 170 organisations in the MSME sector, have downed the shutters in protest today. 

Various organisations in the MSME sector have been seeking the attention of the Union government to find solutions for the pressing issues of increasing input costs and financial aid, but to no avail. 

A production loss of Rs 25,000 crore has been estimated, while the loss in Tamil Nadu has been pegged at Rs 4,000 crore. The strike had impacted production in Chennai and its suburbs and Coimbatore–the two important hubs of MSMEs in Tamil Nadu.

‘RAW MATERIAL PRICES ALMOST DOUBLED’

The strike called today is claimed to be the first of its kind, with the entrepreneurs deciding to stop work. 

“In my four decades as an entrepreneur, it is the first occasion witnessing a strike by employers. Has the government become so ignorant with the issues of entrepreneurs? To an extent, they need to draw the government’s attention,” said K E Raghunathan, convenor of the Consortium of Indian Associations (CIA).

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Newsclick.in, 20 December, 2021, https://www.newsclick.in/MSME-hit-Raw-Material-Price-Rise-Entrepreneurs-Down-Shutters-Protest?fbclid=IwAR0CQAT7yNHIEqu9c_vLCht3aDlyVlofoCIKcBa5Ydu5tPQ3V3yP8KH5ehM


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