MSME News: MSME association AICA calls for government intervention to drive down commodity prices

NEW DELHI: The Indian Council of MSMEs Association (AICA) on Wednesday called for immediate government intervention for the reduction of commodity prices. The association also announced a day-long shutdown of all industries across the country on December 20 and an hour-long peaceful protest outside the office of the respective district collector/magistrate to demand the intervention of the Prime Minister to to reduce commodity prices to April 2021 levels.

Shutting down hundreds of thousands of MSMEs across India for one day will result in Rs 25,000 crore lost in production, he claimed.

MSMEs contribute around 30% of GDP and 48% of exports.

“It is a matter of grave concern for all MSMEs across India that commodity prices continue to rise for unknown reasons.

“We represented this alarming matter through our memoranda to the Honorable Prime Minister and various other Ministers of the Union Government with a request for commodity price controls, but unfortunately nothing happened, and the situation for MSMEs has only gotten worse day by day,” he said.

Due to this issue, MSMEs are unable to fulfill orders taken at a much lower price, the association added.

He also argued for setting a maximum retail price (MRP) for all commodities.

The association has demanded protection against escalation for some time, an easy mechanism to cover steel for all MSMEs, and NSIC should act as a consolidating agency.

“A formula shall be derived for price escalation. SAIL/Steel Industry shall release steel prices for long products, flat products and HRC coils on a quarterly basis. The price shall be held firm for a period at least three months in a row,” he added.

Andrew B. Reiter