Kovai MSMEs to shut shop today against cost hike
Hundreds of MSMEs will shut operations in Coimbatore on Monday as part of a nationwide protest by industries against steep increase in the prices of raw materials.
More than 100 associations representing about one lakh MSMEs are taking part in the one-day strike. The industrial units have also decided to stage a demonstration at South Taluk office.
“Despite representing the matter to the Centre, the raw material prices continue to remain high. One of the major demands is to seek the government to allow import of steel materials based at nil import duty and also ban export of iron ore and steel products. Better GDP growth can be realised if value added products are exported rather than raw materials. This will also generate employment,” said a statement by All India Council of Association of MSMEs.
MV Ramesh Babu, president of Coimbatore District Small Industries Association (CODISSIA) said that more than 2,000 associations are participating at the national level to draw the attention of the government to their plight. It is a matter of grave concern that the price of raw materials has risen from 30 to 150 per cent. Production cost in pump set manufacturing has increased by 40 per cent. The industrialists expressed apprehensions that if the situation persists, more than 40,000 may lose jobs in the district.