Paralysed during the pandemic, the Micro, Small and Medium Enterprises (MSME) sector in Tamil Nadu is facing a new challenge the rising raw material costs.. <br> Several MSME unit owners have said that those who place orders are not willing to shell out more and want the consignments at pre-pandemic rates. For instance, one of the units in Coimbatore had supplied machinery to a textile unit last year. It got a repeat order, recently, at the same price. When the MSME unit owner asked for a price revision, the textile unit was not willing to pay a higher amount.. <br> With the steep hike in raw material prices, how will MSME units supply machinery or components at the earlier prices? This is a difficult situation,said M.V. Ramesh Babu, president, Coimbatore District Small IndustriesAssociation.. <br> Those who get government orders take three to six months to execute them. If they are unable to honour the commitment, they face the risk of being black-listed. But the units will suffer a loss if they execute the orders at the agreed price,he noted.. <br> According to various trade associations, in the last five months, the price of stainless steel increased by 32%, to ₹200 a kg, aluminium by 26%, to ₹210 a kg, and natural rubber by 52%, to ₹156 a kg. Copper, a key component for many in the MSME sector, has touched ₹600 a kg, an increase of nearly 77%.. <br> R.G. Chakrapani, secretary, Thirumazhisai Industrial Estate, said there was a shortage of raw material. . <br> Though the prices of certain raw materials have gone up, industries giving orders are not able to match the prices, said K. Baskaran, secretary of the Kakkalur Industrial Estate Manufacturers� Association. �We are forced to shrink our margins to stay afloat,� he said.. <br> While many MSMEs argue that increasing the product price will not help, pumpset and wet grinder manufacturing industries in the Coimbatore region have already revised the product price. �We [pump manufacturers] went in for a 5% revision last month. However, to survive, pump manufacturers will have to increase the end product price by at least 10%,� said K.V. Karthik, president of the Southern India Engineering Manufacturers� Association.. <br> �The price of electrical steel, the main raw material used by pump makers, was increased by ₹12,000 a tonne on Saturday. If there are such huge spikes in raw material prices, units will slow down or even stop production,� he rued.. <br> K.E. Raghunathan, convener of the Consortium of Indian Associations, explained that companies will not be able meet their overhead costs, which will result in defaults and non-payment of benefits and salaries to employees.. <br> �Consumers will have to bear the higher price, if passed on, and that will shrink the demand further. Both situations are dangerous now,� he said.. <br> R. Selvam, secretary of the Thirumudivakkam Industrial Estate Manufacturers� Association, wanted the government to help by forming separate MSME clusters or a special-purpose vehicle to consolidate requirements and negotiate with raw material suppliers for better pricing.. <br> He also wanted the government to reduce import duty, and, immediately, ban the export of certain commodities, based on inland demand. <br>