PTI reported that All India Council of Association of MSMEs, an umbrella body of 170 MSME associations in the country, has sought immediate government intervention for the reduction of raw material prices and announced one day closure of all industries across the country on December 20 and a one-hour peaceful demonstration in front of the respective Collectorate & District Magistrate Office to press for the intervention of the Prime Minister to reduce raw material prices to the April 2021 level.The association said “We have represented this alarming matter through our memorandums to Hon'ble Prime Minister and various other Ministers in the Union Government with a request to control raw material prices, but unfortunately, nothing has happened, and the situation of the MSMEs has only worsened day by day. It is a matter of grave concern to all MSMEs across India that the prices of raw materials continue to rise for reasons not known. Due to this problem, MSMEs are not able to execute orders taken at a much lower price.”The association demanded protection against escalation for some period, an easy mechanism to hedge steel for all MSMEs, and NSIC should act as a consolidation agency. It said ''Formula should be derived for price escalation. Steel Industry must publish steel prices of Long products, flat products and HRC coils on a quarterly basis. The price should be maintained firm for a period of a minimum of three months at a stretch.”AICA has also requested the government to allow the import of all steel materials based on cost and quality requirements at a nil import duty and also ban the export of iron ore and steel products.As per report, the closure of lakhs of MSMEs across India for a day will result in a production loss of INR 25,000 crore
PTI reported that All India Council of Association of MSMEs, an umbrella body of 170 MSME associations in the country, has sought immediate government intervention for the reduction of raw material prices and announced one day closure of all industries across the country on December 20 and a one-hour peaceful demonstration in front of the respective Collectorate & District Magistrate Office to press for the intervention of the Prime Minister to reduce raw material prices to the April 2021 level.The association said “We have represented this alarming matter through our memorandums to Hon'ble Prime Minister and various other Ministers in the Union Government with a request to control raw material prices, but unfortunately, nothing has happened, and the situation of the MSMEs has only worsened day by day. It is a matter of grave concern to all MSMEs across India that the prices of raw materials continue to rise for reasons not known. Due to this problem, MSMEs are not able to execute orders taken at a much lower price.”The association demanded protection against escalation for some period, an easy mechanism to hedge steel for all MSMEs, and NSIC should act as a consolidation agency. It said ''Formula should be derived for price escalation. Steel Industry must publish steel prices of Long products, flat products and HRC coils on a quarterly basis. The price should be maintained firm for a period of a minimum of three months at a stretch.”AICA has also requested the government to allow the import of all steel materials based on cost and quality requirements at a nil import duty and also ban the export of iron ore and steel products.As per report, the closure of lakhs of MSMEs across India for a day will result in a production loss of INR 25,000 crore
