Micro, Small and Medium-scale Enterprises (MSMEs), which have been for more than a year by the steep hike in raw material prices, have started seeing higher availability of these materials and are seeing indications of prices falling.
Coimbatore District Small Industries’ Association president M.V. Ramesh Babu said prices of iron and steel decreased by nearly ₹10,000 a tonne in the last few days and were likely to fall by another ₹10,000. “Many traders are calling us up and asking us to take the materials. So, availability is increasing. Casting prices are also likely to see a decline with fall in pig iron prices,” he said.
Union Finance Minister Nirmala Sitharaman recently announced reduction in customs duty on raw materials and intermediaries for plastic products, calibration of customs duty on raw materials and intermediaries for iron and steel to reduce the prices, possible reduction of import duty on some raw materials of steel, and levy of export duty on some steel products. “These are exactly the measures that we were demanding from the government. Even when the Minister visited Coimbatore earlier this month, we had suggested these steps. With announcement of reduction in duties, the raw material prices will certainly decline,” he added.
