MSME engineering exporters seek PM’s intervention on rising steel prices

By: |
June 06, 2021 2:38 PM

Ludhiana Hand Tools Association President suggested the government consider setting up a raw material bank for MSMEs to provide steel and other key inputs to them by extending some kind of subsidy.

While some easing is likely over the rest of 2021, prices may average $750-800 per tonne, still up 60% on-year, Crisil said.While some easing is likely over the rest of 2021, prices may average $750-800 per tonne, still up 60% on-year, Crisil said.

Engineering exporters in the MSME segment have sought Prime Minister Narendra Modi’s intervention on rising steel prices, stating that the industry needs the alloy and other inputs at affordable rates so that export competitiveness of value-added products is maintained in the global markets.

In a letter to the prime minister, Ludhiana Hand Tools Association President S C Ralhan said that many of the competing countries, particularly China, provide support to manufacturing units by providing steel and other inputs at much reasonable prices to boost competitiveness of their engineering sector in the global markets.

He said that India is gradually losing out its markets to China in the value-added segment of exports and the recent growth visible in exports is largely on account of hike in the prices of metal and commodities. A sharp decline is seen in the export trends of finished engineering goods, he said.

“In the given situation, the MSME (micro, small and medium enterprises) industry needs to be provided steel at reasonable prices so that export competitiveness of value-added products is maintained,” Ralhan said in his letter. He cautioned that if the prices would not come under control, a large number of manufacturers would be out of business and that could result in closure of factories, loss of employment.

He suggested the government consider setting up a raw material bank for MSMEs to provide steel and other key inputs to them by extending some kind of subsidy.

“An immediate decision is needed particularly as continuance of pandemic in the country has already resulted in closure of large number of MSMEs which will further increase, if immediate steps are not taken to provide steel gto them at most competitive price,” he added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Samsung Galaxy A03 Core budget phone launched in India; will take on JioPhone Next at a price of Rs 7,999
2Redmi Note 11T 5G available starting today: Price in India, sale channels, specs, review, and more
3In-Depth: With Omicron, what awaits for India’s MSME sector as third wave fear looms