MSME Stainless Steel Units Seek QCO Reinstatement Amid Import Surge From China

New Delhi, Jun 25 (KNN) Over 100 MSME players in the stainless steel sector have written to the steel ministry seeking reinstatement of the quality control order (QCO) that mandated the use of BIS-certified items for various stainless steel products. 

The ministry had suspended the order on April 27 to ease the compliance burden on domestic producers, particularly MSMEs, and facilitate raw material sourcing for local manufacturing.

In a letter to the ministry, industry bodies — the Stainless Steel Induction Furnace Association and the Stainless Steel Re-Rollers Association — said, "The suspension of QCO has opened the door for a surge of low-priced imports from China, placing domestic MSME manufacturers under severe pressure and threatening thousands of jobs and substantial investments made by Indian entrepreneurs," PTI reported.

Sharp Rise in Imports

Citing official trade data, the associations said stainless steel imports in April 2026 reached 1,01,252 metric tonnes, a 65 per cent year-on-year increase from 61,143 metric tonnes in April 2025. 

On a month-on-month basis, imports were 69 per cent higher compared to 59,917 metric tonnes recorded in March 2026. Industry members have warned that volumes may continue to rise without government intervention.

Investments and Jobs at Stake

The associations said Chinese products are entering the Indian market at predatory prices, creating an uneven competitive environment for domestic manufacturers who comply with Indian quality standards, environmental regulations and labour obligations.

"Relying on the government's policy direction and commitment towards strengthening domestic manufacturing under the 'Make in India' initiative, many MSME units invested significantly in capacity expansion, technology upgrades, quality improvement and employment generation," a member of the Stainless Steel Induction Furnace Association said.

The industry bodies have urged the ministry to act swiftly, warning that investments and employment in the sector face significant risk if imports continue to rise unchecked.

(KNN Bureau)