SME Times is powered by   
Search News
Just in:   • Higher fiscal spending, consumption recovery lift India's Q2FY22 GDP above 8%  • Samsung unveils new auto chips for high-end cars  • Apr-Oct fiscal deficit over 36% of FY22 target  • Delhi HC order costs PSU insurance officials their Director post  • Inflation concerns 
Last updated: 27 Sep, 2014  

m-rafeeque-ahmedTHMB.jpg 'Deregulation of diesel prices may push input costs of MSMEs'

industry-msme-middle.jpg
   Top Stories
» Higher fiscal spending, consumption recovery lift India's Q2FY22 GDP above 8%
» Apr-Oct fiscal deficit over 36% of FY22 target
» 21.52 cr loans extended to women under Mudra Yojana
» Skill India launches programme to upskill street food vendors
» No proposal to recognise Bitcoin as currency: FM
SME Times News Bureau | 24 Feb, 2012
Deregulation of diesel prices at this point may only add to production costs stifling MSME export sector further, FIEO Chief, M.Rafeeque Ahmed said Thursday.

While commenting on the recommendations of the Prime Minister Economic Advisory Council (PMEAC) on the diesel price deregulation, he said that the timing of recommendation is debatable as crude prices are moving southwards and with political uncertainty in the Middle East, there are little chance of cooling of crude prices.

"If prices are deregulated in such scenario, it will push inflation and would add substantially to the cost burden of industry looking at increasing consumption of diesel by manufacturing units with power situation deteriorating day by day," added President, FIEO.

Ahmed said, "We have already suffered 13 policy hikes to curtail inflation which yielded no results except for killing growth with a decline in credit-offtake stalling expansion of industry and employment. A CRR cut will also not bear much result as we see the paradox of a liquidity crunch on the one hand and a reduced credit off-take on the other."

Making a strong pitch for raising diesel prices, Prime Minister's Economic Advisory Council chairman C Rangarajan on Wednesday said there was a need to revise prices to reduce the huge subsidy burden and bring down the fiscal deficit.

FIEO chief stated that by hiking taxes and deregulating diesel rates at this juncture we may only be adding to the woes of the MSME sector and this may quite be the proverbial last straw.

Policy makers in their wisdom need to address the issue with greater sagacity since we have already burnt our fingers with successive policy hikes.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 01 Dec, 2021
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» 'Close contact with customers key to good customer services'(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter