Panaji: Upset with a steep increase in raw material prices, the Cave State Industry Association (GSIA) has requested more than 2,500 small and micro industries in the state to participate in the closing of a national day planned for December 20.
Gsia has supported all the Indian Association Board (AICA), who has also requested entrepreneurs to hold a peaceful demonstration of one hour on that day to find a reduction in raw material prices.
If 10 Lakh MSMM throughout India advanced with a long closure of the day, it will result in the loss of production of Rs 25,000 Crore.
“Prices of raw materials continue to increase and this is not a normal increase.
Most MSMEs have tariff contracts and suppliers for large companies.
They cannot increase prices even though the cost of raw materials rises,” said President Gsia Damodar Kochkar.
Various MSME and AICA bodies have sent many memorandum to the center of the price increase “worrying” and the need to control raw material prices.
Entrepreneurs want the center for procurement of raw materials such as steel, aluminum and iron in large quantities in the industrial name, or allow negotiating the supply contract to allow revisions to the top.
At present, there is no price escalation clause for public sector projects.
A large increase in raw material prices such as steel, iron ore, aluminum, copper, plastic, PVC, paper and chemicals has caused working capital erosion, said Aica in the release.
“The public sector company must be instructed to receive the cancellation of orders from MSMEs without a penalty or blacklist, because the increase in steel prices is the event force majeure, beyond MSME control,” said Kochkar.
AICA has also recommended that the center allow the import of all steel material based on cost and quality requirements without anti-dumping costs, and also prohibit the export of iron ore and steel products.
“It can be noted that better GDP growth can be realized if the product is worth the added value than raw materials.
This will produce work too,” said Aica.
Kochkar said that the state and central always advocated development and entrepreneurship, but the surge in raw material prices would only paralyze MSMEs and prevent entrepreneurship.