New Delhi, Dec 21 (Representative) Grappling with high input prices, MSME sector has sought a say in the government’s duty decision on four key items –steel, copper, aluminium and polymers claiming that primary producers often take advantage of their market positions. The country’s leading industry body for micro, small and medium enterprises (MSMEs) has stated that millions of small manufacturers pay 25-50% higher prices for the key raw materials compared to their international rates.
In its Budget recommendations to the Finance Ministry, Federation of Indian Micro and Small & Medium Enterprises (FISME) has suggested that large corporates in the metal, minerals and polymers sectors have a larger say in policy decisions of the government with regards to import duty and other non-tariff barriers. “With resources at their command it is not difficult to build a case for barriers to jack-up prices which the commodity producers do. Almost everyone in the industry knows the reason. Ultimately, it is a political decision to take steps in the interest of the nation,” FISME has said. High raw material prices have become a major pain point for MSMEs and they have been crying foul against it seeking government intervention. In order to rein in the prices in the short term, FISME has suggested to abolish import duties from steel, copper, aluminium and polymers and immediately suspend additional custom duties from the four commodities. “Take steps to ensure competitive functioning of factor markets by ensuring that stakeholders have a say during ADD/SD proceedings or while imposition of NTBs (non-tariff barriers) being planned. Further, MSMEs need to be supported to file cases in CCI (Competition Commission of India) against anti-competitive behaviour of commodity producers,” FISME has said. As many as 170 industry bodies under the umbrella of All India Council of Association of MSMEs (AICA) recently announced one-day closure of all industries to protest against soaring raw material prices.