Over 50,000 MSMEs in the district will participate in the one-day shutdown of industries on December 20 to draw the Centre’s attention to issues including skyrocketing raw material prices.
All industry associations like Coimbatore District Small Industries Association, Southern India Engineering and Manufacturers Association and Indian Chamber of Commerce and Industry-Coimbatore (ICCIC) will participate in the bandh. ICCIC sources said that there will be an hour-long demonstration in front of district collectors across the country.
The associations said that they want to show the strength of MSMEs in the country and draw the attention of the government towards the hardship being faced by the MSME sector. The call for protest was given by the All India Association of MSMEs.
Reason for increase in the price of raw materials:
Four significant trends are affecting raw material prices which are Strong global market demand, significantly China’s V shape economic recovery, which has led to shortages of many raw materials,
The oil price has risen by 58% since November 2020, The global shortage of shipping containers has led to a sharp rise in transport, costs from Asia to Europe thus further restricting supplies to Europe, Additional non-tariff costs related to the new UK customs arrangements with the EU are adding to the cost of imported raw materials into the UK from Europe.
Ways to cope with raw materials price volatility:
Understand your true quantities, Establish contracts with clear terms, Identify key commodity categories, Introduce a risk mitigation plan, Set savings goals, Track pricing changes.
Volatile raw material prices were the top concern for manufacturers for the early half of this decade. A recent Deloitte survey suggests that “skills gaps” will leave nearly 2.5 million jobs unfilled over the next 10 years. Volatile pricing and global trade wars mean these gaps can’t afford to stay open much longer.
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