Prices Of Raw Materials Experiencing Steep Hike, Adding To MSME Woes: AICA

• ByStartupStory     |    June 24, 2021

All India Council of Association of MSMEs (AICA) talk about the steep hike in prices of raw materials such as steel, pig iron, copper, aluminium alloy, etc, are adding to the woes of the sector. The association revealed in a statement the rise in the price of raw materials has resulted in several challenges such as erosion of working capital, non-availability of basic raw materials, blocking and stocking of raw materials in the entire supply chain and much more.

As per the AICA, the situation is alarming as MSMEs could be confronted with grave possibilities such as getting black-listed by PSUs and large corporates incase they fail to honour their commitments. The export market which will help in the recovery of the sector and the economy at-large might take a hit in view of the price hike.

Furthermore, the association shared data that indicates how much the prices have skyrocketed in the last one year.The price of copper reached Rs 745 in June 2021 from Rs 355 in April 2020 (a 109.86 percent hike). Other important raw materials like aluminium alloy, mild steel plate, and CRCA sheet reported 94.34, 82.22 and 95.96 percent increase respectively.

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