MSMEs dismayed as raw material prices stay

The Micro, Small and Medium Enterprises (MSME) sector in Coimbatore expressed disappointment as one of their major demands to contain spiralling prices of raw materials found no mention in the Union Budget.

“In spite of submitting several memorandums, it is disappointing to find no mention on banning the export of raw materials like iron ore, steel, paper, plastics and cotton,” said V Ramesh Babu, president of Codissia.

Industrial associations including Coimbatore Tirupur district Micro and Cottage Entrepreneur Association (Cotma), Coimbatore Compressor Industries Association (Cocia) and Kovai Power Driven Pumps & Spares Manufacturers Association (Kopma) echoed similar views. “Already, the pump set and allied industries are incurring severe loss due to pandemic,” said K Maniraj of Kopma.

The textile sector also felt let down over yarn prices. “The budget lacks vision for the growth of the textile sector,” said AC Eswaran, president of South India Hosiery Manufacturers Association (Sihma).

Southern India Mills Association (Sima) chairman Ravi Sam said he hoped the government would exempt ELS cotton and sustainable cotton from the levy of 11% import duty.

Meanwhile, the Tirupur Exporters Association welcomed the exemptions which will benefit knitwear exporters. Raja M Shanmugham, president, TEA said the transportation of domestic garments from Tirupur will increase.

The Cauvery delta farmers who welcomed the announcement of support to organic farming, however, were put off by lack of supportive measures in the budget, including monthly pension to senior citizen farmers and waiver of agriculture loans. According to Swamimalai Sundara Vimalnathan, secretary of Cauvery Farmers Protection Association, the farmers have been expecting an exclusive budget for the agri sector at least this year. “It failed to provide tax exemption extended to the corporate firms. The nation with over 70 per cent of farmers should give priority to them rather than a small group of corporates,” he said. Vimalnathan said the farmers have been appealing to increase the fund of PM Kisan Samman Nidhi Yojana (PMKSNY) from Rs 6,000 to Rs 12,000 based on the production cost met out of the price hike in the fertilisers. Similarly, there are over two crore tenant farmers involved in the cultivation and there is no scheme for them. “The farmers who availed loans after 2007 were expecting a waiver,” he said.He said demand to establish Primary Self Help Group Cooperative Credit Societies in all revenue villages to rein in private finance institutions, also was not looked into.

With GST rates, especially on branded food items and footwear untouched and various demands put forth on practical issues in the GST regime not looked into, industry sectors are dismayed over the budget, said N Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, Madurai. There are no announcements for the growth of trade and industry and the economic development of south Tamil Nadu, such as formation of National Institute of Pharmacology Education and Research (NIPER) at Madurai or implementation of metro rail project, he added.