Ludhiana Industry Body Seeks Steel Price Regulator Amid Sharp Price Surge

Chandigarh, Aug 25 (KNN) Ludhiana-based industrialists and micro, small and medium enterprises (MSMEs) are facing mounting financial pressure following a sharp rise in steel prices, prompting calls for government intervention.

The Federation of Industrial & Commercial Organisation (FICO) has urged the Union Steel Ministry to establish a regulatory committee to monitor steel prices, ensure transparent profit margins and keep prices at reasonable levels.

FICO President Gurmeet Singh Kular said, “Steel prices should be regulated through a proper regulatory authority so that the MSME sector can survive. The frequent increase in prices is making it extremely difficult for industries to operate,” TOI reported.

Steel Prices Rise 

Industry representatives said steel prices have increased by around 15 per cent in three months. Prices rose by about Rs 3 per kg in the past fortnight, from Rs 54 to Rs 57-58 per kg, while cold-headed quality wires used by bicycle and fastener manufacturers increased from Rs 52 to Rs 60 per kg.

The price rise is putting pressure on MSMEs operating on narrow margins. Manufacturers that accepted orders based on earlier input costs are now having to buy steel at significantly higher prices, reducing or eliminating their margins and causing losses.

Industry leaders also alleged that inventory withholding and high distributor mark-ups were contributing to price escalation. They said higher input costs were weakening the competitiveness of Indian manufacturers against competitors from China and Taiwan.

The industry body said timely intervention was necessary to protect MSMEs, which form a significant part of Ludhiana's manufacturing ecosystem.

(KNN Bureau)