Coimbatore MSMEs Urge Government to Curb Steel and Metal Price Surge
Micro, small, and medium enterprises (MSMEs) in Coimbatore are struggling with a sharp rise in raw material costs, including steel, pig iron, copper, and aluminium. These businesses are already facing financial strain due to higher prices of diesel, furnace oil, and LPG. The Joint Council of Associations of Coimbatore submitted a memorandum to Prime Minister Narendra Modi, highlighting the "acute and unprecedented" surge in raw material prices, which is placing severe stress on MSMEs.
The council noted that while Wholesale Price Index (WPI) data indicate fluctuations and even a decline in steel prices, actual market conditions remain adverse. Steel prices have risen by around ₹8,000-₹10,000 per tonne between August and September this year. The council urged the government to set up a Price Monitoring Committee for steel to track availability and prices, preventing hoarding, cartelisation, and abnormal price increases.
The council also sought the withdrawal of import and safeguard duties on steel for six months and the deferment of Bureau of Indian Standards (BIS) requirements and Quality Control Orders for imported steel until March 2027. To address shortages of non-ferrous metals, it called for measures to encourage imports of copper and aluminium scrap and urged the Union government to secure these materials from the European Union through engagement with the Organisation for Economic Co-operation and Development (OECD).
The council further requested the fixing of a Maximum Retail Price (MRP) for essential raw materials to prevent arbitrary price increases. It also urged the Ministry of Steel to explore setting up a SAIL depot in Coimbatore to ensure easy and timely availability of quality steel for MSMEs in the region.