New financial year brings uncertainties to industries in Coimbatore, Tiruppur

With the commencement of a new financial year, industries in Coimbatore and Tiruppur stare at uncertainty as COVID-19 cases are spiking again and raw material prices remain uncontrolled.

P. Nallathambi, president of Coimbatore SIDCO Industrial Estate Manufacturers’ Association, said that the industries were yet to feel the impact of the rising COVID-19 cases. There is no report of many cases in industries in Coimbatore. However, raw material prices continue to be on the rise. Even public sector undertakings are increasing the prices. Though the units have orders they are unable to commit on pricing. Government has to step in and take measures to control the raw material prices, he said.

According to J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, the micro units were yet to revive from the COVID-19 lockdown last financial year.

“There is a hike in raw material prices even today,” he said. If this trend continues, the industries will be affected this year too. There is a hike in COVID-19 cases and the industries are willing to take all precautionary measures. But, there should not be another lockdown. It will cripple industrial activity, he said.

Raja M. Shanmugham, president of Tiruppur Exporters’ Association, said since the time of reopening of industries last year following lockdown relaxations, the units have taken several precautionary measures and there was no major incidence of COVID-19 cases. However, recently, one unit reported a number of cases. “The protocols are in place and we continue to create awareness.”

In Europe, there is an extension of lockdown. So there are uncertainties in the new year, he said.

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