MSMEs bleed in Hyderabad as transport stir continues

Hyderabad, Apr 6 (KNN) With the transport strike entering the seventh day, the MSMEs in Hyderabad are being severely affected as the stocks of raw material and supplies start to dry up.

Talking to KNN, Anil Reddy Vennam, Immediate Past President, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) explained the gravity of the situation. “The basic structure of MSMEs is that they thrive on inputs they buy on weekly basis due to low purchasing power. Also since March is the end of financial year, this further limited their raw stock, transport coming to halt is no less than a disaster for the MSMEs,” he said.

Talking about the halted production Reddy said, “Almost all units including my own plastic unit are not producing anymore, our outputs can’t reach the destination, nor can we avail the input supplies.”

He explained that the break in the production cycle due to the strike might have long term impacts as well. “Post Demonetization, we were just getting to settle down, another disruption of the production cycle is a very bad indicator for the industry both now as well as in the long run” Anil added.

However he did empathize with the demands of the transporters. “The tariff the transporters charge hasn’t increased in years due to competition, the demands of the transport operators to reduce the toll tax and reduction of the insurance cost is therefore genuine” opined Anil

Registering protest against the Government in this regard Reddy said “So far I have not heard of any Government board working on negotiating with the transporters, the Government must have acted efficiently before the strike was called”.

The city houses around 50,000 MSMEs (Micro, Small and Medium Enterprises). (KNN/ DA)