AICA claims closure of a million MSMEs to cost Rs 25,000 cr Chennai, 17 Dec (KNN) The All India Council of Association of MSMEs (AICA), h...
AICA claims closure of a million MSMEs to cost Rs 25,000 cr
Chennai, 17 Dec (KNN) The All India Council of Association of MSMEs (AICA), has stated that a loss of INR 25,000 crore will be incurred due to the one-day closure of operation by 10 lakh MSMEs as a part of protest against the rising prices of raw materials.
This will also lead to loss of employment and put hurdles in the economic recovery.
The cost of aluminium has increased 154% in the past 18 months, while the price of copper increased 118%, the mild steel plate price saw 82% hike during the same period, pointed out AICA.
As published in ET, a member of AICA and Coimbatore-based R Ramamurthy said, “It must be noted that the steep hike in price of raw materials across all sectors, despite low consumption of raw raw materials and subsequent drop in the production by MSMEs – directly leading to loss of employment, and depreciating value of rupee - due to Raw Material price increase.”
The association has urged the government to control the prices of raw materials and enforce regulations.
It has also suggested a slew of measures to the government to mitigate this issue.
The protest is on 20th December, 2021 with a closure of operations for entire day including a one-hour peaceful demonstration in front of the respective ollectorate and District Magistrate Office.
