MSMEs seek curbs on steel, metal price surge; urge Centre to cut import duties
MSMEs in Coimbatore are urging the Indian government to intervene in the rising costs of raw materials like steel, copper, and aluminum. The industry council has requested import duty cuts and the establishment of a price monitoring committee to protect small businesses.
Why it matters
Rising raw material costs threaten the viability of small-scale manufacturing sectors, which are critical to regional employment and economic stability.
Coimbatore’s Micro, small and medium enterprises (MSMEs), already reeling under higher prices of diesel, furnace oil and LPG, are facing mounting pressure from a sharp rise in the cost of key raw materials such as steel, pig iron, copper and aluminium.
The Joint Council of Associations of Coimbatore, in a memorandum submitted to Prime Minister Narendra Modi, said the “acute and unprecedented” increase in raw material prices was placing severe stress on MSMEs.
While Wholesale Price Index (WPI) data indicate fluctuations and even a decline in steel prices, actual market conditions remain “adverse”, the council said. Steel prices have risen by around ₹8,000-₹10,000 a tonne between August and September this year, it added.
The council urged the government to constitute a Price Monitoring Committee for steel to track availability and prices and prevent hoarding, cartelisation and abnormal price increases.
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