Ahmedabad: While the across industrial sectors are shaken from steep increases in production costs because of raw material prices, shipping costs and fuel increases, the expansion of the Emergency Credit Line Guarantee Scheme (ECLG) comes as a big assistance for the industry.
Gujarat is home to at least 8 lakh UMKM, according to the data submitted by the Ministry of MSMEs at Lok Sabha.
With an extension of the scheme, additional credit will be available for industrial units that will help them meet working capital needs.
Patik Patwari, Senior Vice President, Gujarat Chamber of Commerce and Industry (GCCI) said, “The cost of cost in the industry will increase significantly with working capital loans available through ECLGS extension.
With the shipping costs up, coal prices soar, fuel and material prices Raw shoots through the roof, production costs rise dramatically, which in turn affects the price of finished goods.
“Various manufacturing sectors are shaken from severe cost pressure.
While the price of cotton and cotton threads almost doubled, the price of several basic chemicals, dyes and intermediaries also increased between 40% and 60% over a two-year period.