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Coimbatore: How high import duty of raw materials affects Small scale industries?

By Team YourCoimbatore on 10th November 2021
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The Coimbatore District Small Scale Industries Association (Codissia) has urged the Union government to cut the import duty of raw materials to nil rate and fix the MRP price for at least three months as rising raw material prices, including steel, copper, iron ore, aluminium, paper, plastics, PVC, cotton and chemicals, has impacted the cost of operations.

President of Codissia MV Ramesh Babu said the association has made a representation to the Prime Minister seeking his intervention and remedial measures for the MSME sector. The remedial measures include an immediate ban on export of iron ore and raw materials to ease domestic supply and to appoint NSIC as a consolidation agency to hedge steel for all MSMEs.

On support from public sector units (PSUs), the association has asked the units to accept cancellation of orders from MSMEs with no penalty and blacklisting. “PSUs like SAIL should focus on MSMEs for supply of materials on priority basis and all steel industries should allocate at least 50% of their production for Indian MSMEs,” a press statement from the association said here on Tuesday.All MSMEs under government contract and suppliers to PSU, should be allowed to revise their price with fresh quotes.

Also, requests have been made to arrange an enhanced working capital limit at 40% of the turnover from the banking sector to tide over the present crisis being faced due to the raw materials price increase. The affected product manufacturers are unable to observe the cost of raw material and due to this, end-product prices increase also not observed in the market. Hence, MSMEs have slowed down their production, the statement said.

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