Reserve 40 pc of steel for MSMEs, demand traders

Tribune News Service

Ludhiana, June 24

Traders, belonging to different industrial sectors, have expressed their concern over the continuous rise in raw material prices. Over 170 industries under the banner of All India Council of Association (AICA) of the Micro, Small and Medium Enterprises (MSMEs) organised a virtual meeting to discuss various important trade-related issues.

Upkar Singh, president, CICU and SC Ralhan, president, Ludhiana Hand Tools Manufacturers Association, said the export of steel and iron ore should be banned for at least six months. The coke mines closed due to environmental cleanliness must be permitted to operate their mines. Priority must be given to the MSMEs and distribution of steel must be made in a transparent manner by the Steel authority of India. More steps should be taken by the government to enhance the capacity of steel production in coming years and quick clearance should be given to projects.

Besides, incentive in PLI to be given to the MSME producing components from steel such as auto components, bicycle and components, hand tools, sewing machine and parts, hardware etc., stressed Upkar Singh.

Ralhan added that there should be a dedicated steel hub for MSMEs. A total of 40 per cent of the steel manufactured should be reserved for the MSMEs. Rather than direct export of steel and iron ore, we should work in value addition on these products as finished products sells at higher price than the raw products. For example if export steel for Rs100 products made from steel such as auto components, bicycle and components, Hand tools, sewing machine and parts, Hardware fetch higher realisation in tune of Rs200 to 400 per kg.

He further said that the raw material price hike should be controlled by the Govt. to save the MSMEs.

Join Whatsapp Channel of The Tribune for latest updates.