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India

Coimbatore’s 50,000 MSMEs Announce One Day Closure in Protest of high Raw Material Cost

Union government’s decision to increase the Goods and Services Tax for textile products from 5% to 12% from January.

Punjab bandh
Image used for representation. (PTI)

Coimbatore: Around 50,000 Micro Small and Middle Enterprises (MSMEs) downed their shutters in Coimbatore district on Monday, December 20, to draw the attention of the authorities to the skyrocketing prices of raw materials used in various industries.

The one-day closure resulted in the production loss of around Rs 1,500 crore, as the industries manufacture all types of spare parts for two-wheeler to six-wheeler, motor and pumps, defence and naval sectors, wet grinders, foundries and plastic industries, industry sources said.

The prices of raw materials have been increasing in the last one year, rising from 40% to 70% and some times 100%, which was leading to loss of job orders for majority of the industries, even as 40 industrial associations extended support to the call given by All-India Council of Association of MSMEs for the nationwide stir, president of Tamil Nadu Association of Cottage and Tiny Enterprises J James said.

Major industrial areas like Peelamedu, SIDCO, Kinathukaavu and Thudiyalur fell silent owing to the day-long strike. “Besides taking steps to bring prices under control, the Union government should form a committee to fix the rate of various raw materials,” James said.

The Federation of Tamil Nadu Merchants Associations has also submitted a memorandum to Erode District Collector H Krishnanunni, demanding him to represent the Tamil Nadu government on its behalf to take steps to reduce the prices of raw materials for textile-printing, leather, plastics and food products.

In the memorandum, the association mentioned that within a short period, the prices of raw materials for textile and other industries have risen. The merchants were not able to conduct their business efficiently for this reason, it said.

The association also brought up the Union government’s decision to increase the Goods and Services Tax for textile products from 5% to 12% from January, which is estimated to impact the industry in a major way.

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