MSMEs in Hosur, Tamil Nadu threaten strike against payment delays, unfair price

Hosur, July 14 (KNN) The manufacturing industry backed by micro and small units in Hosur, Tamil Nadu has decided to go on an indefinite strike from August 1, if large industries do not pay the fair price demanded by them.

Hosur Small and Tiny Industries’ Association (HOSTIA) made the announcement on Wednesday.

The industry body was leading a two-day strike demanding fair price for MSME-produced components to large companies in Hosur.

The strike was a result of the unmet demands that were presented by the MSMEs before the start of the current financial year.

HOSTIA President K.Velmurugan condemned the averseness and inaction of large companies to address and pay attention to the demands of the MSMEs. 

Before the fiscal 2022-23 HOSTIA announced a revision of costs for inputs manufactured by MSMEs that supply to the large companies. 

“Although the entire manufacturing architecture rested on the MSMEs they were not given fair prices for their goods and the prices have remained unchanged for the last 15 years,” HOSTIA had said.

According to Velmurugan, the overhead costs have gone up manifold, with the costs of raw materials, rents, labour, GST among other overheads incurred by the MSMEs but these production costs are not factored in the final pricing by large companies. 

The MSME sector unlike other sectors does not discriminate in employment and provides gainful employment to the educated as well as the illiterate, who are rejected by large companies. However, the MSMEs are facing an existential crisis due to untenable pricing fixed by large industries, Velmurugan said.  (KNN Bureau)