MSME body seeks intervention of PM on rising raw material prices

The MSME organisation wants PM’s action in the escalating pricing of raw materials. As we all know, prices are growing for raw materials, for example for steel, iron ore, aluminium, copper, plastic and paper. The problem caused by the epidemic continues to affect MSMEs. MSME thus struggles to find a way out of this and to seek Prime Minister Narendra Modi’s assistance.

In this article, we learn about the representatives of the All India Association Council of MSMEs (AICA) requesting help from PM Modi.

MSME body seeks intervention of the PM

MSMEs are badly hit by the pandemic. Therefore, the issues are addressed by a total of one hundred and seventy industrial organisations which have formed the All India Association of MSMEs (AICA). AICA immediately asked for assistance from Prime Minister Narendra Modi on Wednesday to help as the prices of raw materials like steel, iron ore, aluminium, copper, plastics and paper are increasing.

AICA further pointed out that it has major challenges since working capital is depleted because of the tremendously higher pricing of basic materials.

MSME body ( AICA) seeks intervention of PM on eight major points

This is what AICA says “It is a momentary issue that we recognise. But it might irreversibly harm the MSME sector. Despite the fall in demand from the lockdown, expenses, particularly steel, pig iron and other raw materials, are growing”

Entrepreneurs with MSME registration have reported prices 10 – 20 times higher for steel and other basic material producers, while all msMEs are ready to go out of business.

The organisation thus suggested eight points to fix the situation. Let’s look at each of them.

Firstly, Protection against an acceleration in costs for some days.
Secondly, The government must direct public sector enterprises (PSUs) to cancel bookings from MSMEs with zero penalties/ blacklisting.
Furthermore, The government should derive a formula for price escalation.
In addition, the quota for MSMEs at concessional price.
Additionally, allow the import of all steel supplies based on price and quality requirements at zero import duty and no anti-dumping
Government should also ban the export of iron ore and steel products.

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