MSMEs to protest over rise in raw material cost
‘Badly affected by the increase in costs’
Over 90% of the Micro Small and Medium Enterprises (MSME) in and around Chennai will take part in the one-hour demonstration called by the All India Council of Association of MSMEs to highlight issues pertaining to the rising raw material prices and its impact on the sector.
Heads of various MSME units said they would stage a silent protest in front of the Chennai Collector office.
All units at the Kakkalur Industrial Estates have decided to down their shutters.
?50 crore loss
Its secretary, K. Baskaran, said over 250 units with more than 20,000
employees will be closed. One day’s closure here means a loss in business worth ?50 crore.
Businessmen from the Guindy Industrial Estate will also participate in the demonstration but firms here said they would come back and resume work as they could not afford any further losses.
V.K. Girish Pandian, president of IEMA Guindy, said, “Steep rise in prices of raw materials over the past ten months has severely affected lakhs of MSMEs across the country and we are also very badly affected by this unprecedented hike. MSMEs have long-term contracts with big companies without a price hike clause. The price rise is affecting all the units and it has become difficult to sustain, especially post the pandemic,” he pointed out.
Members of the Thirumudivakkam Industrial Estate Manufacturers Association and Thirumazhisai Industrial Estate will also participate in the demonstration. But there would be no impact on production at these two estates.
R. Selvam, Secretary of Thirumudivakkam Industrial Estate Manufacturers Association and R.G. Chakrapani, Secretary of Thirumazhisai Industrial Estate, said it would be business as usual for them.