Escalating raw material prices of steel, aluminium and plastics big challenge in revival for MSMEs: Mahratta Chamber

Pune, Jan 4 (KNN) The production level of industries in Pune have been increased by one per cent in December, said a recent survey by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).

As per the survey the current level of production of these industrial units increased from 78 per cent in November to 79 per cent in December while the number of employees working has stayed the same at 82 per cent.

Nearly, 150 firms participated in the survey.

Sudhir Mehta, president, MCCIA, said that while there is month on month progress, Micro, Small and Medium Enterprises (MSMEs) are facing some acute challenges.

“One of the key challenges faced in the recent past is that of escalating raw material prices especially that of metals like iron, steel and aluminium and even plastic. This is making operations of many inviable,'' he added.
 
On the other hand, Prashant Girbane, director-general, MCCIA said that the large companies show between 85-95 per cent recovery on an average and MSMEs are catching up especially in the last couple of months.

“Across the board, companies are more optimistic about full recovery in this month’s survey responses as compared to last month,” he added.

The survey further revealed that 27 per cent of the company’s production was already at pre-Covid levels. Whereas 23 per cent of the respondents said that they expect their production levels to go back to the pre-Covid levels in less than three months. Also, 31 per cent of the respondents said they expect it to take between three to six months, 13 per cent said it would take between six and nine months, four per cent said it would take beyond nine months and two per cent were uncertain.

Eventually, Mehta appealed to the government to take note of this and intervene appropriately.