403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Rubber Msmes Face Severe Cost Pressure As Natural Rubber Prices Jump 40%: AIRIA
(MENAFN- KNN India)
New Delhi, May 15 (KNN) India's rubber sector MSMEs are facing mounting pressure as natural rubber prices have surged 35-40 percent amid geopolitical tensions and war-related uncertainty, the All India Rubber Industries Association (AIRIA) said.
Small Manufacturers Struggle With Rising Costs
AIRIA President Anay Gupta said small manufacturers are struggling with rising raw material costs, shrinking profit margins, delayed payments and higher freight charges.
He noted that unlike larger companies, MSMEs do not have the financial capacity to maintain large inventories or absorb sudden price volatility in key raw materials.
The sharp rise in natural rubber prices has significantly increased production costs for small rubber product manufacturers, many of whom operate on thin margins and limited working capital.
Industry Warns Of Competitiveness Risks
Industry players warned that prolonged price volatility could disrupt production cycles, weaken competitiveness and put additional stress on smaller firms already dealing with payment delays.
AIRIA urged policymakers to closely monitor the situation and consider measures to stabilise raw material availability and protect smaller manufacturers from prolonged financial distress.
Global Supply Disruptions Add To Uncertainty
The rubber industry, which includes thousands of MSMEs engaged in tyres, footwear, auto components and industrial products, remains particularly vulnerable to global commodity disruptions.
With geopolitical uncertainty continuing to impact global supply chains, industry stakeholders fear further cost escalation in the coming months.
(KNN Bureau)
Small Manufacturers Struggle With Rising Costs
AIRIA President Anay Gupta said small manufacturers are struggling with rising raw material costs, shrinking profit margins, delayed payments and higher freight charges.
He noted that unlike larger companies, MSMEs do not have the financial capacity to maintain large inventories or absorb sudden price volatility in key raw materials.
The sharp rise in natural rubber prices has significantly increased production costs for small rubber product manufacturers, many of whom operate on thin margins and limited working capital.
Industry Warns Of Competitiveness Risks
Industry players warned that prolonged price volatility could disrupt production cycles, weaken competitiveness and put additional stress on smaller firms already dealing with payment delays.
AIRIA urged policymakers to closely monitor the situation and consider measures to stabilise raw material availability and protect smaller manufacturers from prolonged financial distress.
Global Supply Disruptions Add To Uncertainty
The rubber industry, which includes thousands of MSMEs engaged in tyres, footwear, auto components and industrial products, remains particularly vulnerable to global commodity disruptions.
With geopolitical uncertainty continuing to impact global supply chains, industry stakeholders fear further cost escalation in the coming months.
(KNN Bureau)
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment