Despite the gradual easing of restrictions and the government allowing units to resume operations, these enterprises are facing many other problems ranging from shortage of skilled manpower to increased cost of raw materials. in Dharwad, Dakshina Kannada and Mysore In the districts, more than 40,000 MSMEs have been identified whose productivity has been affected.
Ajit Kamath, president of Canara Industries Association, sought to illustrate the magnitude of the problem with the figures: “About a quarter of the 8,000 MSMEs in Dakshina Kannada are not in a position to resume operations immediately due to fiscal constraints, raw materials Cost increase material and labor shortage. The uncontrolled increase in the prices of raw materials more than the epidemic is hurting the MSMEs.
Canara Chamber of Commerce and Industry President Isaac Vas said that many MSMEs in Dakshina Kannada have been unable to pay salaries to employees during the lockdown. “We have written them PMORequesting the Center to consider paying the salaries of the employees ESI The fund package launched by the state government does not fulfill the promise of an immediate solution. We want the Center to ensure that fuel prices do not rise for the next six months.
Though some MSMEs involved in the food and spices sector registered an uptick in demand for their products, they were unable to tap their profit opportunities due to labor shortage.
Suresh Kumar Jain, Secretary General, MSME Council, Mysore (Chapter), informed that the pandemic has had an impact on the industrial sector. “When MSMEs struggle, the large corporations that depend on us for components and various other needs also suffer,” he said.
President of Mysore Industries Association Vasu Concerned about the migration of laborers from urban areas. “We have skilled laborers among the local population, but we are apprehensive about resuming full operations, as all restrictions have not been lifted yet,” Vasu said.
Former President of Federation of Karnataka Chamber of Commerce and Industry Sudhakar S Shetty said the sector is pinning its hopes on the state and central governments to save the MSMEs. He reiterated the demand among all stakeholders to bring the fuel under GST, which he said would help check rising prices.
Persistent restrictions, Ramesh Patil, owner of Patil Electric Works in Hubli, argued that it would be impossible for the unit to meet 20% of its annual output.
RG Bhat, president of the Greater Hubli-Dharwad Industries Association, said many of their orders have been withdrawn due to the delay in the arrival of raw materials. “Efforts are on to get more orders. The government should allow us to operate units with 100% workforce, and consider limiting the number of working days in a week,” he said.
NS Birdar, President, North Karnataka Small-Scale Industries Association believes that the situation for MSMEs will improve only when the situation returns to pre-Covid times.
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