: Govt should reduce raw material prices to April 2020 level and protect against escalation for a year: AICA #FinanceIndia #StockMarketNEWS Govt should reduce raw material prices to April 2020 level

@StockMarketNEWS Thu 16 Dec, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Govt should reduce raw material prices to April 2020 level and protect against escalation for a year: AICA #FinanceIndia #StockMarketNEWS
Govt should reduce raw material prices to April 2020 level and protect against escalation for a year: AICA New Delhi, 14 Dec (KNN) In view of the rising price of raw materials and protest being held by MSMEs, the All India Council of Association of MSMEs (AICA) has come out with few suggestions for the government to address the issue.

Firstly, AICA has requested the government to help reduce the prices to April 2020 level and fix MRP (maximum retail price) for all raw materials. They have requested protection against escalation for a year, as published in BusinessLine.

“National Small Industries Corporation (NSIC) should act as a consolidation agency and it should be in a position to consolidate and hedge the overall steel quantity in the marketplace. This kind of hedging should be possible for a period of one year (as rate contract extends for a year) and NSIC could make bulk bookings of steel at a price with the option of taking deliveries within 12 months as fixed,” AICA said.

SAIL and others must publish steel prices of long and flat products and HRC coils on a quarterly basis, suggested the umbrella association of 170 MSME associations.

It has also asked for maintaining price firm for a period of a minimum of three months at a stretch.

Given their vital role in the recovery of various production sectors in the post-pandemic era, MSMEs should be given priority for the supply of materials and PSUs like SAIL and Vizag steel should do this for MSMEs.

Also, all steel industries should allocate at least 40 per cent of their production for Indian MSMEs, the association stated.

AICA has also requested the government to allow the import of all steel materials based on cost and quality requirements at a nil import duty (no anti-dumping) and also ban the export of iron ore and steel products.

“It may be noted that better GDP growth can be realised if value-added products are exported rather than raw materials. This will generate employment too,” it said.