SATISH HANDA
Increase in exports in past few months is the last hope for survival of micro, small, medium enterprises (MSME) having nearly 45% share in exports as well as in domestic market playing important role to increase employment opportunities in the country. A study reveals, since from the month January this year MSME received good export orders during first three months in current year having nearly 58.50% growth in business leaving a ray of hope for improvement in economic condition of industry faced severe sickness during year 2020 due to KOVID-19 spread worldwide which adversely affected not only indigenous sale as well as exports to other countries.
According to exporters as well as industry expects, a ray of hope visible this year if inflow of export orders continue. A survey reveals, MSME having more than 45% share in exports this year as compared to the previous year due to worldwide lock down and most of the workers migrated from other states had left for their native places due to KOVID-19 spread and after the situation improved they returned back to their work places as such production in domestic industry became normal recording 75.57% increase in case of gems and jewellery business, 47.37% increase in case of drugs and pharmaceuticals, 70.28% increase in engineering products, 42.59% increase in textile, carpets and handicrafts, 27.49% increase in readymade garments, 18.27% increase in leather products, 52.84% increase in dairy and poultry products, 40.80% increase in processed foods as such large number of processed foods manufacturing units are being set up in the country.
President, Federation of Indian Exporters Organization (FIEO) Sharad Kumar Saraf Said, growth in exports will continue in future too since countries like USA and Britain are now finding relief from epidemic outbreak as compared to last year and Indian exporters are still getting handsome export orders at present in-spire of KOVID-19 fast spreading in the country at present. Saraf said, after traffic block ended in Swej River shipping services have become normal and goods of value hundreds crores despatched by Indian exporters blocked on the way are likely to reach destinations soon.
According to exporters, nearly 58.50% increase in export orders has been observed during current year as compared to previous year 2020 but they will be compelled to increase export prices between 15-20% due to continuously rising prices of raw material, which is going to affect export business. Most of MSME units buying basic raw material including granuals used in steel moulding, craft papers, chemicals, plastic and cotton are facing crisis due to severe shortage of raw material and heavy increase in prices as a result they suffering export orders and unable to make supplies against orders already procured by them and various trade organizations has made an appeal to government to have control over fast rising prices and make available raw material to complete supplies against orders already procured by them due to drastic rise in prices of basic raw material failing which they will be blacklisted and will not get export business in future.
General Secretary, Federation of Indian Small Medium Enterprises (FISME) Anil Bhardwaj said, as a result of fast increasing prices of all types of raw material in past couple of months and government unable to control the same the industry is unable to make supplied against old orders already procured by them and majority of industrial units especially manufacturing iron and steel products are facing severe economic crisis and are on the verge of closure and made an appeal to Minister of Steel Dharminder Pradhan to save metal containers collapsing industry having annual requirement of tin plate 6.5 lakh ton but are getting only 4 lakh ton through indigenous sources and are unable to import raw material due to tough rules and are forced to reduce their production as such thousands of small scale manufacturing units have become sick or defaulters.
According to entrepreneurs having units manufacturing metal products in Haryana state, the prices of all types of raw material has witnessed drastic increase in price in past 3-4 months adversely affecting their business since the prices of aluminium has increased from Rs 78 to Rs 136 per kg, price of brass increased from Rs 370 to Rs 450 per kg, the price of Zinc increased from Rs 190 to Rs 230 per kg. The price of different types of steel including rod, scrap, angles and CR sheets increased up to 40 to 60% going to adversely affect steel hardware industry.
