VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has drawn the urgent attention of Chief Minister N Chandrababu Naidu to the severe impact of ongoing West Asia tensions on MSMEs across the State.
AP Chambers stated that MSMEs, which constitute 90% of AP’s industrial base, are facing disruptions due to declining sales. Key sectors affected include agro commodities, seafood, mango pulp, bananas, rice, granite, machinery & equipment, and foundries. Exporters are encountering shipment delays, container shortages, and a rise of nearly 10% in freight costs.
The Chambers highlighted that industries dependent on petrochemical inputs and fuel-such as tiles, food processing, and hospitality-are witnessing increased costs and supply uncertainties. This has triggered a cascading effect on logistics, cold storage, packaging, and other allied sectors.
AP Chambers said pending industrial incentives for the past five to six years have severely strained MSME liquidity and urged the State government to release all dues immediately to restore confidence, sustain operations and protect employment. While partial releases were made, it said the current geopolitical situation has worsened financial stress.
The Chambers sought measures including 3-5% interest subvention on working capital, power tariff relief, fuel and diesel support, expedited GST refunds, coordination with banks for additional credit and flexible repayment, and uninterrupted LPG and industrial gas supply. It also proposed a rapid industry monitoring mechanism.
Further, it urged the State to seek Central support for expanding CGTMSE, introducing emergency credit lines, enhancing export incentives and reducing import duties on key raw materials.