The micro, small and medium scale industries (MSMEs) are finding it difficult to bear the skyrocketing fuel prices. With increasing fuel prices raising the expense on transportation, their cost of production too has surged.
Vasanth Ladwa, a businessman in PU leather footwear industry, said that usually, any business has no more than 10% profit margin. “However, from January to August this year, the price of petrol and diesel has risen by 17.5 per cent. Central excise was hiked 12 times in the last four years,” he said.
Ladwa said since PU leather footwear industry depends on petroleum products, the price rise has affected the industry severely. “We have a profit margin of 8-9%. The cost of raw material has increased by 17% in the last eight years. Our workers are also demanding petrol allowance. How can we run the industry?” he added. Read more
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