Rajasthan's trade bodies flag increasing production cost concerns

Amid competition between states to corner businesses, Rajasthan’s trade bodies claim that the increasing production costs are preventing the development of industries in the state.

Industries, including firms in the micro, small and medium enterprise (MSME) sector, are finding it difficult to survive the competition due to higher costs compared to neighbouring states, they said.

Businesses and industries of the state are seeking a reduction in the cost of production. The cost of industrial products in Rajasthan is the highest among the north Indian states, they said. The state houses more than 260,000 MSMEs that employ over 460,000 people, according to the trade estimates.

Suresh Aggarwal, president, Federation of Rajasthan Trade and Industry, said the price of land in Rajasthan was among the highest in north India. “Also, because of high prices of electricity, production costs remain high,” Aggarwal said, urging the state government to provide land at a reasonable cost for the industries. He also pitched for the use of solar energy to run industries.

The All Rajasthan Trade and Industries Association (ARTIA) said high fuel rates were also a reason behind such high production cost. 

ARTIA’s Executive President Prem Biyani said: “The government should reduce value-added tax on petrol and diesel as is in the bordering states. Electricity should be affordable, and the government should provide land for new industries on a no-profit-no-loss basis,” Biyani said.

Rohit Sharma, who runs a small-scale industry here, complained of a lack of basic facilities like roads, drains and sewers in government-run industrial areas. Getting a no-objection certificate from the Pollution Control Board is difficult, he said.