A welder works on a metal frame at a fabrication unit in a MSME
| Photo Credit: The Hindu
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.
It also sought withdrawal of applicable import and safeguard duties on steel for six months and deferment of the Bureau of Indian Standards (BIS) requirements and Quality Control Orders for imported steel until March 2027.
To address shortages of non-ferrous metals, the council called for measures to encourage imports of copper and aluminium scrap. It also urged the Union government to take measures on a “war footing” to secure copper and aluminium scrap from the European Union through engagement with the Organisation for Economic Co-operation and Development (OECD).
The council further sought 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 to MSMEs in Coimbatore and neighbouring industrial regions.
Published – October 05, 2026 09:44 pm IST
