There are over 150 micro units in the industry, manufacturing of oil expellers and their parts. It employs over 2,000 people, and has a collective annual turnover of Rs. 15 crore.
“The rising prices of almost everything that is used in running an industry is creating problems for the manufacturers. Not only have the prices of raw material increased, but the prices of the electricity supply and upgraded machinery used for testing products have also increased,” said Kanwarjit Singh, a manufacturer.
“Even low-skilled labourers demand higher wages, leading to low productivity and higher rejection rates,” he said.
“ Inflation is also leading to slower upgradation of technology and poor working conditions. Even the government has increased VAT, and loans are not available at lower rates of interest,” said Maninderpal Singh, another manufacturer.
“ The industry is doing well in terms of exports, but inflation is causing it to lag behind in growth, ” Singh said.
“The state government should support the industrialists by decreasing the rate of interest on loans, enabling them to equip their firms with better infrastructure,” he said.