Continuous double digit growth in WPI inflation is a major worrying factor as it is impacting the cost of production and reducing price-cost margin of the producers, according to Mr Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.
The WPI inflation stands at 12.07% in June 2021 as compared to 12.94% in May 2021, Mr Agarwal said in a statement here today.
WPI inflation of the manufactured products has increased to 10.88% in June 2021 from 10.83% in May 2021. The increase in costs of raw materials is affecting the MSMEs which are already struggling because of pandemic impact and squeezed working capital, Mr Aggarwal added.
High commodity prices are posing a serious challenge to the small businesses to operate in the difficult pandemic times, which needs to be addressed immediately through the adequate reforms in the supply chains of high price commodities, Mr Aggarwal opined.
PHDCCI has suggested the Government to do away with the custom duties on the imports of primary raw materials for industrial use for at least current FY 2022 and impose export duties on various primary commodities showing huge price increases, exceeding 50% over the last FY 2021, Mr Aggarwal added.
WPI inflation of fuel and power at 32.83% in June 2021 is still significantly high as it is escalating the input costs of the industry and its competitiveness in the domestic and international markets, he said.
At this juncture, PHDCCI has urged the Government to consider petroleum products in the ambit of GST to rationalize the prices and to contain the rising inflation, the statement added.
