West Asia crisis hits AP MSMEs, Chambers seeks urgent aid
The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has appealed to Chief Minister N. Chandrababu Naidu for immediate relief measures for Micro, Small, and Medium Enterprises (MSMEs), saying the ongoing tensions in West Asia have severely affected trade and pushed many units into financial stress.
In a representation to the Chief Minister, the federation said MSMEs account for nearly 90 per cent of the State’s industrial base and are now facing falling sales and weaker export demand. Sectors impacted include agro commodities, seafood, mango pulp, bananas, rice, granite, machinery, equipment, and foundries.
The body said exporters are struggling with shipment delays, shortage of containers, and a rise of nearly 10 per cent in freight charges, adding to the burden on businesses already operating on thin margins.
Industries dependent on petrochemical inputs and fuel, such as tiles, food processing, and hospitality, are also facing higher costs and supply uncertainty. The impact has spread to logistics, cold storage, packaging, and allied sectors.
AP Chambers pointed out that industrial incentives have remained pending for the last five to six years, creating a serious liquidity crunch for enterprises. Though partial payments were released recently, the present geopolitical developments have worsened the situation.
The federation urged the State government to immediately clear all pending incentives to improve cash flow, restore confidence, and help units continue operations while protecting jobs.
It also sought measures such as 3 to 5 per cent interest subvention on working capital, power tariff relief, diesel support, faster GST refunds, additional bank credit with flexible repayment, uninterrupted LPG and industrial gas supply, and a rapid industry monitoring system.
The Chambers further requested the State government to take up with the Centre the expansion of the CGTMSE scheme, an emergency credit line, higher export incentives, and lower import duties on key raw materials.
AP Chambers president Potluri Bhaskara Rao said timely intervention was crucial to help MSMEs withstand the crisis, maintain production, and safeguard employment across Andhra Pradesh.