Industrial Raw Material Shortage To MSME, Production Affected
Industrial raw material shortage to MSME, production affected due to price rise, business unable to fulfill old order.
MSMEs are beginning to cut their production due to the ever-increasing prices of industrial raw materials. MSMEs are finding themselves unable to fulfill orders taken at the old rate due to raw material being expensive.
At the same time, due to the huge increase in exports of many types of raw materials, they are not able to provide raw materials easily.
MSMEs are lacking in Industrial raw material mainly used in steel moldings like granules, craft papers, chemicals, plastics, and cotton.
Many associations associated with MSMEs have also appealed to the government for the availability of raw materials.
According to MSME entrepreneurs, the price of aluminum has increased from Rs 78 to Rs 136 per kg in the last three-four months.
During this period, brass sold for Rs. 370 per kg rose from Rs. 470, copper from Rs. 470 to Rs. 570 and from Rs. 190 to Rs. 230 per kg.
Prices of different types of steel have also gone up by 40-60 percent. The price of plastic is also increasing continuously due to the associated crude oil.
Anil Bhardwaj, secretary-general of the Federation of Indian Small Medium Enterprises (FISME), says entrepreneurs are not able to fulfill their orders taken at the old rate due to the steep rise in raw material prices.
This is affecting their production and there is also a shortage of capital.
SC Ralhan, an exporter associated with engineering products, said that due to the huge increase in exports of raw materials, they are causing a shortage of domestic production.
In a letter to Steel Minister Dharmendra Pradhan, the Container Manufacturers Association has said that metal container manufacturers require 6.5 lakh tonnes of tin plate and tin free steel annually.
Whereas domestically it is available only 4 lakh tonnes. Due to strict import rules, raw material is not available.
Noida MSME Industrial Association District President Surendra Nahata said that Noida’s 5,000 MSME defaulters could be affected due to the affected products. In this regard, he has also written a letter to the Prime Minister.
