Money & Banking

Govt looking into the issue of ‘volatility’ in raw material prices: Gadkari

G Balachandar Chennai | Updated on January 20, 2021 Published on January 20, 2021

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The Central government is working on a mechanism to control the prices of raw materials to support Micro, Small and Medium Enterprises, pointed out Nitin Gadkari, Union Minister for Road Transport & Highways, Shipping and MSME.

“We are aware that MSMEs are facing problems due to the increase in prices of input materials such as metals. It is a serious subject and the government is considering measures,” he said during a discussion after delivering the inaugural address on virtual mode for the CII National Foundry Conclave.

To a question on the shortage of containers that was impacting the exports of foundry industry, Gadkari said the government was looking into the issue. Due to Covid-19, there was a shortage of containers and now those containers were being relocated. “I feel the problem would be resolved in the next 15-20 days,” he added.

Earlier, he urged the foundry industry to work towards reducing imports and improve technology and quality.

NK Samaraj, Past President, The Institute of Indian Foundrymen (IIF), highlighted the problems faced by the foundry industry and requested the government to institute a policy to ensure stability of prices and availability of raw material for value addition industries like foundry units.

Hari Thiagarajan, Chairman, CII Tamil Nadu, said the foundry market in India during 2020-2024 is poised to reach $13.08 billion at a CAGR of 10 per cent. “About 90 per cent of the units are in the MSME segment and the industry employed about 2 million people, mostly from socially and economically weaker sections of the society,” he said.

The conclave, which will be held on digital platform over six days, will discuss the challenges, opportunities and way forward for this sector.

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Published on January 20, 2021
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