Coimbatore MSMEs Demand Government Action on Metal Shortages and Price Surge

Coimbatore's MSMEs and industry groups have appealed to the government for immediate action to tackle severe shortages and soaring prices of essential raw materials like steel, copper, and aluminium. In a letter to Prime Minister Narendra Modi, the Joint Council Associations of Coimbatore highlighted that steel prices surged by Rs 8,000-10,000 per tonne between August and September 2026, despite official data showing a decline.

The associations proposed several measures, including a temporary withdrawal of import and safeguard duties on steel for six months until March 2027. They also suggested deferring certain quality control requirements for imported steel to alleviate supply constraints. Additionally, they called for a Price Monitoring Committee to oversee pricing and prevent market manipulation.

For non-ferrous metals, the groups urged the government to promote imports of copper and aluminium scrap and to secure supplies under the OECD framework from the European Union. They also requested the establishment of a SAIL depot in Coimbatore to ensure better steel availability for local industries.

The rising costs of fuel and raw materials have significantly increased production expenses for MSMEs, prompting the associations to demand urgent government intervention to stabilize prices and ensure adequate supply.