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Members of various industrial associations staging a demonstration in the city on Tuesday. | Photo Credit: M. Periasamy
Micro and small-scale unit owners of nearly 19 industrial associations staged a protest here on Tuesday, demanding steps by the Central and State governments to control prices of raw materials used by these industries.
J. James, co-ordinator of Federation of Coimbatore Industrial Associations, said nearly 700 people from different associations took part in the protest. The main demand was control of raw material prices. The protesters also demanded steps by the governments to address the challenges faced by the micro and small-scale units. They sought a separate loan policy by the banks for micro units.
MSMEs, already laid low, run into price rise hurdle December 11, 2020, 3:22 PM IST
It has been a case of surmounting one hurdle after another for the micro, small and medium enterprises (MSMEs), the backbone of Tamil Nadu’s strong manufacturing base in engineering and automobile sectors, throughout 2020. As the year draws to a close, the segment is facing fresh trouble over surging raw material prices.
If the general economic sluggishness marred the sector at the beginning of the year, the Covid-19 pandemic and the subsequent lockdowns brought the operations to a near standstill in the March-May period along with the exodus of guest workers. “Most MSME units were in despair in March when they had to shut due to Covid lockdown. While the Centre’s financial package, which permitted a 20% increase in the existing borrowing limit of the units from banks, the money that came in was used to manage running costs of sustaining operations of the companies rather tha