A staggering 100-200 per cent increase in crucial raw materials has forced micro, small and medium enterprises (MSMEs) in Gujarat's chemical sector to cut production by 50 per cent.
Of the 11,000-odd units in the state, which account for nearly 40 per cent of India's chemical output, almost a third have turned sick, with overall production down by 50 per cent due to several factors, including input cost and freight rate hikes, according to the Gujarat Chemical Association (GCA).
"Not only has production fallen due to multiple factors, but nearly 60 per cent of all MSME units have turned sick as well. The chemical industry has seen a decline in cost competitiveness decline and a fund crunch as well. So