High Raw Material Prices Hurting MSMEs – AICA

All India Council of Associations (AICA) of MSMEs is seeking government intervention against the rising cost of raw materials. The increasing cost of raw materials is impacting MSMEs’ sustainability as they struggle to deliver the orders taken with the low prices of raw materials into consideration.

To show their displeasure, the association has called for one day’s closure of the industry which is expected to result in Rs 25,000 crore of production loss. They also announced an hour of peaceful demonstration at the regional Collectorate/District Magistrate office to attract the attention of the Prime Minister’s Office.

MSMEs contribute to 48% of India’s exports and the rising cost is a grave concern for MSMEs. The association is pressing for fixing the maximum price for all raw materials and formulating a way to fix prices and review them quarterly.