EPS, Thennarasu in war of words as inflation ‘robs’ bonus of pvt staff

The issue had also become a political subject with the Leader of the Opposition Edappadi K Palaniswami and state Industries Minister Thangam Thennarasu locking horns over it. Pointing out that the real estate and infrastructure sector are hit by a 30 per cent raw material inflation, LoP had demanded the CM’s intervention. 

Though Industries Minister Thangam Thennarasu listed out the measures taken by the state government the traders and retailers fume over the rising inflation and loss of margin. Besides the demand for raw materials, the frequent diesel price rise had also hit the industries and the common man. 

“The profit margin of MSMEs had drastically dwindled due to high input costs. The manufacturing sectors had taken a big hit thanks to the steep price rise of steel, copper, aluminium and transportation. It is a fact that the SMEs are struggling to give Deepavali bonus,” said KE Raghunathan, convenor, Consortium of Indian Associations and past president of All India Manufacturers Association. 

The Centre had failed to keep the inflation under check and as a result, the micro and macro industries based in Tamil Nadu are suffering. The manufacturing units are not able to pick up their margins and are on verge of losing orders. Inflation, COVID imposed lockdown restrictions, higher tax slabs, steep hike in diesel and petrol price are other factors that are choking the entrepreneurs and startups, Raghunathan added. 

According to industry sources, the cost of steel, copper, aluminium, cement, timber and transportation had surged up to 30 pc choking the small manufactures and consumers. “The profit in the food industry had reduced by 10 to 15 pc in the past two months. The diesel and LPG cylinder price had robbed our margins. This year I have told my employees that there is no bonus,” said S Sasikumar, proprietor, AGS Catering Service.