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Tamil Nadu
The sudden spurt in the prices of all commodities coupled with the steep increase in the prices of raw materials did not spare the small-scale and tiny industries in the Cauvery delta region of Nagapattinam district. Both the entrepreneurs as well as workers are keeping their fingers crossed and worried of escaping the present economic crisis that has affected the livelihood of the people. Survival battle onThe severe power shortage for more than 12 hours a day in rural areas has added fuel to the fire, crippling the small units. Several units are now fighting for survival and some face closure till the problems are settled. N. Basker, president of Nagapattinam District Small Scale Industries Association, said that the cost of raw materials for making rubber and plastic ancillary products for automobile industry had gone up by 50 per cent in the last six months resulting in less off-take for the goods produced by the small scale units. There are more than 4,000 small-scale and tiny industries in the district and many are facing closure, he said. Most of them, very small in nature, employ only about 10 workers in each unit. The owners of the units are anxious about running the units as they get power supply only for about two hours in day time. Mohamed Hanifa, owner of a tiny unit in Mayiladuturai engaged in making ancillary products like rubber seals and plastic caps for various industries, said he might have to wind up his business owing to high production cost and increase in wages for the workers. Mr. Hanifa, in the early 40s, says that he was leading a happy life a year ago, getting a monthly income of about Rs.15,000 from his manufacturing unit but he could not manage even Rs.10,000 per month now. I have to look after my five-member family with this income besides sending my two kids to school. He pointed out that he was yet to own a house and living in a rented house, paying a rent of Rs.2,500 every month. With the steep increase in the prices of raw rice sold at Rs.25 to 27 per kg and boiled rice at Rs.24 to Rs.27 per kg in the last one month, thoor dhal at Rs.54 per kg, groundnut and gingelly oil at Rs.100 per kg. “I am running a deficit family budget and borrowing a loan of not less than Rs.3,000 every month. I have to meet education, medical, transport and incidental expenses averaging to about Rs.4,000 per month. We have stopped going to theatres or other entertainment for a year now due to unbearable price increase in all spheres,” said a sad Mr. Hanifa. Nagalakshmi, leader of a women self help group making paper cups in a village near Sirkazhi, said that all the 30 members in the SHG were earning an average of Rs.1,500 to Rs.2,000 per month by making paper cups and supplying it to several parts of the State. This income was useful for supplementing the income of the male members of the family. Power cutsThe acute power shortage and erratic power supply had affected their tiny unit which could achieve only about 30 per cent of the total production. “As a result, our income has also dwindled to just Rs.700 to Rs.900 causing untold misery in the family. The coconut oil used as hair oil in rural areas is selling at Rs.120 per kg and we have restricted our buying and sparingly use coconut oil,” Nagalakshmi explains. T. P. Rangasamy, a worker of a food processing and pickle making unit, says that the demand for processed food came down due to the price increase. The increase in the prices of dried red chilly at Rs.76 per kg, good gingelly oil at Rs.120 per kg, jaggery at Rs.30 per kg and other ingredients required for making pickles and other eatables have resulted in the production cost rise. The consumers are now reluctant to buy processed food items and pickles, due to lack of purchasing power. Unable to deliver ordersAccording to M. Varadarajan, manager of a small-scale unit at Vedaranyam, many small scale units that had secured orders with great difficulty from several parts of the State for supply of various products were unable to deliver promptly, thanks to erratic power supply and sudden shortage of raw materials. P. K. Ramasamy, a worker of small-scale unit in Mayiladuturai, said that with the Rs.5,000 he earns a month, he could barely meet the monthly expenses of his five-member family. “I am paying a house rent of Rs.1,500 and Rs.2,000 towards purchase of essential commodities and Rs.1,500 for education of children, electricity and incidental expenses. Going to cinema has become a luxury for my family,” he added.
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