COIMBATORE: While the state government has allowed the export and auxiliary units, and industries producing essential items to operate with 25% workforce from Monday, industrialists are staring at challenges like constantly rising raw material prices, labour shortage and financial problems induced by the lockdown.
A recent government order has allowed the export units, which have commitments or orders and their vendor units to function with 25% of workers in Coimbatore and 10 other districts, where Covid-19 cases are considerably high.
The government has also permitted continuous processing industries and those manufacturing essential commodities to function by adhering to the standard operating procedures and other Covid-19 related guidelines.
According to sources, at least 40% of the industries are likely to be resume operations in the district from Monday.
M V Ramesh Babu, president, Coimbatore District Small Industries Association (Codissia), said one of the major issues they were facing was soaring prices of raw materials.
“Even during the lockdown, when most of the industries were not functioning and there was no demand for the raw materials, the price had gone up by 10% to 12%.” He said the steel price had shot up to Rs 80,000 per tonne from Rs 72,000 and was likely to increase further.
“While accepting orders, industries agree to manufacture the items for a rate based on the prevailing price of raw materials.
When the price increases significantly, industries incur losses,” he said.
J James, district president, Tamil Nadu Association of Cottage and Tiny Enterprises, said the price of raw materials like stainless steel rod, cast iron, brass, gunmetal and pig iron had increased by 60% to 80% in the past one year, while materials like plastic had become costlier by 150%.
“For more than six months, we have been seeking the intervention of the Union government to control the price rise by forming a committee for the same.
We haven’t received any positive responses so far.
It is really disappointing,” he said.
Pointing out that most of the guest workers had gone back to their native places during the lockdown, James said the industries were staring at labour shortage presently.
“Since the government has allowed us to operate with only 25% of the workforce, it would not be an issue now.
But when we start to operate in a full-fledged manner, labour shortage is going to hit us badly.” Expressing hope that most of the guest workers would return in another one and half months, the Codissia president said many of them had already started inquiring about reopening of industries to plan their return travel.
K V Karthik, president, Southern India Engineering Manufacturers’ Association, said they were also facing financial crunch.
“Though we were not functioning for the past one month, we had to meet 25% of regular expenses like wages to the workers and loan repayments from our pockets.
As a result, our fund flow is interrupted.
We need capital amount to resume the business.” They said without the government support, it was impossible for them to survive the present situation.