Tamil Nadu: Rs 1,500 cr loss as MSMEs go on strike over rising materials’ cost

Over 50,000 MSMEs’ involved in production of spares for pumps, wet grinders and foundries downed shutters in the district. More than thousand members of around 70 associations, which have pledged their support for the protest, also staged a demonstration in front of the South Taluk office. Following the protest, the members handed over a petition to Coimbatore Collector GS Sameeran highlighting their issues.

In Coimbatore, industrial areas like Sundarapuram, Avarmpalayam, Peelamedu, Ganapathy, Chinnavedampatty, Idayarpalayam and Neelambur areas fell silent due to closure of industrial units.

“Price of aluminum and copper has risen by 70 per cent within a year resulting in pump set costs escalating by 40 per cent. Around 40,000 micro units, which are dependent on job orders, were reeling without any work orders due to escalating prices of raw materials,” said J James, president of Tamil Nadu Association of Cottage and Tiny Enterprises.

The industrialists expressed apprehensions that if the situation persists, more than 40,000 people employed in the MSMEs may lose jobs in the district. The protesting associations sought intervention of Prime Minister Narendra Modi to keep prices of raw materials under check and constitute a monitoring committee to address the price rise concern of MSMEs.