Hubballi: The micro, small and medium scale industries ( MSMEs ) are finding it difficult to bear the skyrocketing fuel prices. With increasing fuel prices raising the expense on transportation , their cost of production too has surged.Vasanth Ladwa, a businessman in PU leather footwear industry , said that usually, any business has no more than 10% profit margin. “However, from January to August this year, the price of petrol and diesel has risen by 17.5 per cent. Central excise was hiked 12 times in the last four years,” he said.Ladwa said since PU leather footwear industry depends on petroleum products, the price rise has affected the industry severely. “We have a profit margin of 8-9%. The cost of raw material has increased by 17% in the last eight years. Our workers are also demanding petrol allowance. How can we run the industry?” he added.Ramesh Patil, proprietor of Patil Electric Works Pvt Ltd, said the cost of transportation of spares has increased. “We are forced to get spares by road only even though cargo service has started from Hubballi airport. The cost of cargo is more. We supply products to large scale industries. The price rise has affected profitability of MSMEs,” Patil said.Patil, who is a former president of Karnataka Chamber of Commerce and Industry, said that a memorandum will be submitted to the Centre to initiate measures to reduce the prices.The district has many MSMEs including agro-based, cotton textile, woolen, silk and artificial thread based clothes, ready-made garments and embroidery, wood/wood based furniture, leather, chemical, rubber, plastic and petroleum based, engineering units and electrical machinery and transport equipment. Valves and machinery components are the major exportable items manufactured in the district.These industries are suffering due to the rise in petroleum prices. The price of petrol and diesel has crossed Rs 82 and Rs 74 per litre in Hubballi, which is a commercial city of the state.

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