Ludhiana, Jun 7 (KNN) Micro, Small and Medium Enterprises (MSMEs) engaged in engineering exports have urged Prime Minister Narendra Modi to intervene on rising steel prices.

Reportedly, in this regard, Ludhiana Hand Tools Association (LHTA) has written to PM Modi and said that the industry needs the alloy and other inputs at affordable rates so that export competitiveness of value-added products is maintained in the global markets,

''Many of the competing countries, particularly China, provide support to manufacturing units by providing steel and other inputs at much reasonable prices to boost the competitiveness of the engineering sector in the global markets,'' said LHTA president S C Ralhan in the letter.

While apprising the Prime Minister of a sharp decline in the export trends of finished engineering goods, Ralhan said that India is gradually losing out its markets to China in the value-added segment of exports and the recent growth visible in exports is largely on account of a hike in the prices of metal and commodities.       

“In the given situation, the MSME industry needs to be provided steel at reasonable prices so that the export competitiveness of value-added products is maintained,” Ralhan added.

He warned that if the prices would not come under control, a large number of manufacturers would be out of business and that could result in loss of employment.

''The government should consider setting up a raw material bank for MSMEs to provide steel and other key inputs to them by extending some kind of subsidy,'' he suggested.