Coimbatore: The Small Scale Industrial Association of Coimbatore Regency (Codissia) has urged the United States to cut the raw materials to the Nile Rate and improve the price of MRP for at least three months due to rising raw material prices, including steel, copper, iron, including ore, aluminum, Paper, plastic, PVC, cotton and chemicals, have had an impact on operating costs.
President Codessia MV Ramesh Babu said the association had made a representation to the Prime Minister who was looking for intervention and improvement measures for the MSME sector.
Improvement steps include direct prohibitions of export iron ore and raw materials to facilitate domestic supply and designate NSIC as a consolidated body to protect all MSMEs for all MSMEs.
As support from the public sector unit (PSU), the association has requested a unit to receive the cancellation of orders from MSMEs without a penalty and blacklist.
“Psus Like Sail must focus on MSMEs for material supply based on priority and all steel industries must allocate at least 50% of their production for Indian MSMEs,” press statement from the association on Tuesday.
All MSMEs under government contracts and suppliers to PSU, must be allowed to revise their prices with new quotes.
For all government and PSU supplies resolved, MSMEs must be allowed to request increasing clauses and requotes.
Also, demand has been made to regulate the limits of working capital which is increased at 40% of the turnover of the banking sector to install in the current crisis faced because of the increase in raw material prices.
The affected product manufacturer cannot observe the cost of raw materials and because of this, the increase in final product prices is also not observed on the market.
Therefore, MSMEs have slowed their production, the statement said.