Several thousands of MSME units downed their shutters for the day to protest the unprecedented raw material price hike that is threatening the survival of small units.
To seek the immediate intervention of the government, the MSME associations called for a day’s closure of operations on Monday and staged protests in front of Collectorates.
The protest was necessitated as the Central government has not addressed the issue despite several representations made against the frequent price hikes by the steel companies without proper reasons, according to the MSME associations.
In Chennai, members of MSME associations staged a peaceful protest seeking the Central government’s immediate intervention. “About 30 MSME associations participated in this protest against the raw material price hikes. About 35,000 units in the State shut shop to support this move. More than 700 small entrepreneurs participated,” V Nithiyanantham, General Secretary of Tanstia told
Raw materials such as steel, aluminium, copper, and plastics have seen price hikes in the range of 68-87 per cent as of October 2021 when compared with October 2020 level. “Already lakhs of people have lost jobs. If the Central government doesn’t intervene and curb the price hikes, crores of people would be rendered jobless,” he said.
“At the Kakkalur industrial Estate, Thiruvallur, near Chennai, more than 100 units downed their shutters in support of a protest call by MSME associations. We also made representation to the collector,” said K Baskaran, Secretary, Kakkalur Industrial Estate Manufacturers Association (KIEMA).
Despite taking hits on their businesses, small entrepreneurs participated in the demonstrations. The State’s other industrial hubs such as Coimbatore also witnessed closure of units.
“Several thousands of units downed their shutters in the Coimbatore region and revenue loss is estimated at about ₹1,500 crore due to this day’s closure. Almost 80 per cent of the MSME units closed their operations here today,” said a spokesperson of All India Council of Association of MSMEs, an umbrella body of 170 MSME associations.
AICA has already sought the intervention of the the Prime Minister to take concrete steps to rein in the prices of raw materials.