MSMEs in Karnataka face twin blow amid fuel price rise, minimum wage hike
MSMEs in Karnataka are facing significant challenges due to recent fuel price hikes and a substantial increase in minimum wages. Industry representatives report losses of 15-20%, which severely impacts their already thin profit margins. Many businesses are considering shutting down or leasing their premises as they struggle to cope with rising costs and declining demand.
- ▪Fuel prices have risen four times in 11 days, increasing logistics and input costs for MSMEs.
- ▪The State government has raised minimum wages by an average of 60%, putting additional pressure on small enterprises.
- ▪Many companies are incurring penalties due to delays in dispatch caused by the crisis.
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| Original publisher | The Hindu — Top |
| Canonical URL | https://www.thehindu.com/news/cities/bangalore/msmes-in-karnataka-face-twin-blow-amid-fuel-price-rise-minimum-wage-hike/article71025155.ece |
| Publication time | Tue, 26 May 2026 19:29:51 +0530 |
| Retrieval time | 2026-05-26T14:07:49.536Z |
| Last seen | 2026-05-26T14:07:49.536Z |
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Opening excerpt (first ~120 words) tap to expand
The back-to-back fuel price hikes, coupled with the State government’s recent notification raising minimum wages by an average of 60%, have dealt a double blow to Micro, Small and Medium Enterprises (MSMEs) across the State, industry representatives said.Kamalesh Mehta, general secretary at Kumbalagodu Industries Association, said that across sectors, industries have suffered losses of around 15-20% minimum. “That’s a big one because generally the net profits are around 6% to 10%. That is completely gobbled up. Now people are simply trying to sustain until the crisis is over.
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