Bengaluru: KASSIA President KB Arasappa on Thursday appealed to the Union Steel Ministry to intervene immediately and protect the interests of the MSMEs in the State as they face hardship to survive due to increasing steel prices.
” As though battling the covid related disruptions was not enough, the MSMEs in the state face serious trouble with the rising steel prices, the basic raw material for many micro and small enterprises in the manufacturing sector,” he added.
He said that The price of steel has risen by 35 percent to 40 percent in the last 3 months, along with zinc and Aluminum, which puts the MSMEs in great jeopardy when they can barely recover from the impact of the pandemic. The touted recovery is, in fact, seriously impaired by this sudden development.
“We, therefore, urge the government to intervene by subsidizing the prices or impose price control to ensure prices are reigned in. This sudden spike in prices has made it impossible for MSMEs to meet confirmed orders, and exports are in danger of losing markets to competitors with long term negative consequences. The government must step in to ensure the steel is supplied at a competitive price to consuming small industries,” he added.