There have been steep hikes in the prices of commodities and it has hit the industry pretty hard. Recently, the associations of industries that use rubber as their raw material, publicly appealed to the government. Their concern was that the increased duties and the provision of futures trading of rubber was hurting the small and medium industries. While the larger industries could absorb the shock of the steep price rises, it was the small and medium industries that were suffering the most.
The worst hit industries are those who manufacture tyres for cycle rickshaws and automobiles. While the government’s move comes in order to safeguard the interests of the handful of rubber planters in Kerela, its larger effects are being felt by the industries that are not able to make ends meet.
In safeguarding interests of a few, the government has clearly neglected the millions of workers who work in the industry units that use rubber as raw material. Due to the added duties on rubber imports, many small industries will have to fold in and many workers will be rendered unemployed.
Statistics show that there has been more than a 200% price rise in the prices of rubber in the last six years. This poses a problem to small industries which are not even able to raise the manufacturing volumes to break even. These high prices of commodities are going to hurt the small and medium scale industry the worst, feel the associations.Perhaps it is time that the government took notice.
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