gcci: Struck by the costs: Gcci requests extension of credit for MSMEs | Ahmedabad News


Ahmedabad: Disruption in the supply chain during the pandemic has led to higher prices for almost all commodities. Various industries are facing the negative impact of the hikes so much so that the Gujarat Chamber of Commerce and Industry (GCCI) has demanded a 30% credit extension for the Micro, Small and Medium Enterprises (MSME) industry ).
GCCI recently made representation to Ahmedabad MPs Hasmukh Patel and Dr Kirit Solanki. “The economy is recovering quickly and all industries have good orders. However, raw material prices for textiles, plastics, chemicals, construction and the pharmaceutical industry have increased by an average of 35-40%. As a result, the working capital requirements of all industries have increased. The industry needs 35-40% more money for the same amount of materials, so it has to reduce the volume of production. Just like the Covid package, we want the cash credit limit for all industries to be increased by at least 30% so that production remains normal,” said Sachin Patel, Secretary of GCCI.
He added that the deputies will represent the issue at the Centre. “MSMEs are the backbone of our economy and all industries are getting good orders. Rising commodity prices are a global issue and if our industry has credit support, we can compete globally,” he said. GCCI has also demanded a defense corridor in Gujarat, like that of Uttar Pradesh and Tamil Nadu to promote this sector. The trade and industry body also demanded the establishment of a GST simplification tribunal. “We have asked the two MPs to come up with a special policy to increase the production of oilseeds in the state, and thereby reduce the dependence on the import of edible oil,” said Pathik Patwari, Senior Vice President of GCCI.
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