Raw material prices start falling, giving relief to MSMEs

Prices of iron and steel decreased by ₹10,000 a tonne

Micro, Small and Medium-scale Enterprises (MSMEs), which have been for more than a year by the steep hike in raw material prices, have started seeing higher availability of these materials and are seeing indications of prices falling.

Coimbatore District Small Industries’ Association president M.V. Ramesh Babu said prices of iron and steel decreased by nearly ₹10,000 a tonne in the last few days and were likely to fall by another ₹10,000. “Many traders are calling us up and asking us to take the materials. So, availability is increasing. Casting prices are also likely to see a decline with fall in pig iron prices,” he said.

Union Finance Minister Nirmala Sitharaman recently announced reduction in customs duty on raw materials and intermediaries for plastic products, calibration of customs duty on raw materials and intermediaries for iron and steel to reduce the prices, possible reduction of import duty on some raw materials of steel, and levy of export duty on some steel products. “These are exactly the measures that we were demanding from the government. Even when the Minister visited Coimbatore earlier this month, we had suggested these steps. With announcement of reduction in duties, the raw material prices will certainly decline,” he added.

C. Balasubramanian, president of Indian Chamber of Commerce and Industry, Coimbatore, said reduction in fuel prices would ease inflation and benefit the common man and the MSMEs.

“We also thank the Central government for the announcement of duty cuts to cool down prices of iron and steel, coal and plastic. These steps will benefit user industries and small-scale players that have been complaining of a jump in prices. We appeal to the Tamil Nadu government to come forward to reduce the prices of diesel and petrol which will help each and every one to a greater extent,” he said in a press release.