Lok Sabha Question No. 165 (UNSTARRED), answered on 2023-02-02
Subject: Price of Raw Materials for MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Thirumaa Valavan Thol

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 165 TO BE ANSWERED ON 02.02.2023

## PRICE OF RAW MATERIALS FOR MSMEs

## 165. SHRI THIRUMAAVALAVAN THOL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  is  aware  of  the  price  of  raw  materials  such  as  metals, plastics, etc., for Micro, Small and Medium Enterprises (MSMEs);
- (b) if so, whether the raw material prices have affected MSMEs productions;
- (c) if so, whether there is decline in the demand for MSME products in the recent years;
- (d) if so, the details thereof; and
- (e) the measures taken by the Government to support MSMEs?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDMUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a) to (d): The price of raw materials such as metals, chemicals, plastics, rubbers etc., is monitored through the Wholesale Price Index (Base 2011-12). The details are at Annex-1.

The Ministry of Micro, Small and Medium Enterprise (MSME) does not maintain data  with  respect  to  effect  of  raw  material  prices  on  production  or  aggregate  demand  of MSME products.

- (e):    The Government has taken several steps to support MSMEs which inter alia include, providing  financial  assistance  under  Raw  Material  Assistance  (RMA)  Scheme  of  National Small  Industries  Corporation  Limited  (NSIC),  Exemption  on  Basic  Custom  Duty  on  steel scrap  has  been  extended  for  up  to  31st  March,  2023,  TMT  bars  below  8  mm  have  been exempted  from  the  purview  of  the  Quality  Control  Order  &  waived  off  import  duty  for several raw materials like coking coal, Ferro-nickel etc.

****

Annex-1

Table 1: WPI (Base: 2011-12) and WPI-based Inflation of Industry-groups pertaining to Paper, Chemical, Rubber, Plastic and Basic Metal during the year 2022.

|                                   | Paper and Paper Products          | Chemical and Chemical Products    | Rubber and Plastic Products       | Basic Metals                      |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| WPI                               | WPI                               | WPI                               | WPI                               | WPI                               |
| Jan -22                           | 142.1                             | 137.5                             | 127.3                             | 143.1                             |
| Feb-22                            | 143.3                             | 139.2                             | 127.3                             | 147.1                             |
| Mar-22                            | 148.5                             | 142.3                             | 130.0                             | 157.5                             |
| Apr-22                            | 153.7                             | 145.7                             | 131.7                             | 161.2                             |
| May-22                            | 156.3                             | 147.0                             | 132.0                             | 158.2                             |
| Jun-22                            | 155.8                             | 148.3                             | 131.3                             | 150.0                             |
| Jul-22                            | 154.4                             | 147.8                             | 131.1                             | 149.4                             |
| Aug-22                            | 154.5                             | 146.6                             | 129.4                             | 148.9                             |
| Sep-22                            | 154.2                             | 146.0                             | 129.5                             | 146.6                             |
| Oct-22                            | 152.8                             | 146.3                             | 129.2                             | 145.6                             |
| Nov-22                            | 151.2                             | 145.3                             | 128.5                             | 143.5                             |
| Dec-22                            | 148.2                             | 144.2                             | 128.5                             | 143.0                             |
| WPI-base Inflation (Year-on-Year) | WPI-base Inflation (Year-on-Year) | WPI-base Inflation (Year-on-Year) | WPI-base Inflation (Year-on-Year) | WPI-base Inflation (Year-on-Year) |
| Jan -22                           | 14.60                             | 13.82                             | 9.65                              | 16.53                             |
| Feb-22                            | 14.00                             | 13.08                             | 9.46                              | 21.47                             |
| Mar-22                            | 13.62                             | 13.30                             | 8.79                              | 27.02                             |
| Apr-22                            | 15.74                             | 13.83                             | 7.77                              | 25.35                             |
| May-22                            | 17.87                             | 14.49                             | 8.91                              | 18.50                             |
| Jun-22                            | 17.14                             | 15.59                             | 8.87                              | 11.94                             |
| Jul-22                            | 15.66                             | 14.31                             | 7.99                              | 11.49                             |
| Aug-22                            | 16.60                             | 12.51                             | 5.63                              | 9.57                              |
| Sep-22                            | 15.16                             | 11.37                             | 4.52                              | 6.39                              |
| Oct-22                            | 11.37                             | 8.94                              | 1.97                              | 1.18                              |
| Nov-22*                           | 8.31                              | 6.52                              | 0.71                              | -0.07                             |
| Dec-22*                           | 4.96                              | 5.41                              | 1.10                              | 0.78                              |

*Provisional

Table2:  WPI  (Base:  2011-12)  and  WPI  bases  Inflation  of  Industry-groups  of  Paper, Chemical, Rubber, Plastic and Basic Metal during the last three years

|                                     | 2019-20                             | 2020-21   | 2021-22*   |
|-------------------------------------|-------------------------------------|-----------|------------|
| WPI                                 |                                     |           |            |
| Paper and Paper Products            | 121.1                               | 121.7     | 137.5      |
| Chemical and Chemical Products      | 117.5                               | 118.2     | 133.5      |
| Rubber and Plastic Products         | 108.5                               | 111.3     | 124.8      |
| Basic Metals                        | 106.2                               | 111.4     | 140.1      |
| WPI-based Inflation (Year-on- Year) | WPI-based Inflation (Year-on- Year) |           |            |
| Paper and Paper Products            | -1.77                               | 0.52      | 12.96      |
| Chemical and Chemical Products      | -1.28                               | 0.60      | 12.91      |
| Rubber and Plastic products         | -0.99                               | 2.57      | 12.19      |
| Basic Metals                        | -5.35                               | 4.87      | 25.75      |