Gujarat, June 18 (KNN) The Gujarat’s chemical MSMEs have cut their production by 50 per cent due to the staggering rise in prices of raw materials.

According to the report by the Gujarat Chemical Association(GCA), out of 11,000-odd units in the state, which account for nearly 40 per cent of India's chemical output, almost a third have turned sick, with overall production down by 50 per cent due to several factors, including input cost and freight rate hikes.

“Not only has production fallen due to multiple factors, but nearly 60 per cent of all MSME units have turned sick as well”, said Jaimin Vasa, president of GCA.

The chemical industry has seen a decline in cost competitiveness decline and a fund crunch as well. So we have asked the government and banks for some sort of stop-gap arrangement," he added.

The chemical industry, which is largely represented by MSMEs, sane for a few large players, relies on key raw materials such as sodium nitrate, aniline oil, sulphuric anhydride and urea, whose prices have risen sharply over the past few months.

Meanwhile, the chemical cluster in the state has also made representations to the government through GCA, for conducive policies such as that in environmental laws. (KNN Bureau)