BANGALORE: The Federation of Karnataka Chamber of Commerce and Industry (FKCCI) has welcomed the Union Government’s decision that all central ministries/departments/PSUs should procure 20 per cent of their annual purchases from the micro, small and medium enterprises (MSME).President of FKCCI, J R Bangera, expressed his gratitude to the government which took this positive decision at the right time. This measure will help promote MSMEs by improving their market access and competitiveness through increased participation in government purchases and encouraging linkages between these industries and large enterprises, he observed.In a press release, he said, “The MSMEs, including the Khadi, village and coir industries, constitute an overwhelming majority of this sector which contributes significantly to the gross domestic product, manufacturing output and exports.” In the overall production/value chains, however, MSMEs are highly susceptible to volatile market conditions. To address these inherent problems, many countries have put in place public procurement policies to support and to ensure a fair share of market to such entities. Under the existing dispensation, the government guidelines provide for the marketing of products through a variety of measures such as price preference, reservation of products for exclusive purchases, issue of tender sets for free, exemption from payment of earnest money etc, he noted.
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