Coimbatore MSMEs Seek Urgent Govt Action Over Steel, Copper, Aluminium Shortages, Price Rise

Chennai, Oct 6 (KNN) Coimbatore-based MSMEs and industry associations have urged the government to take urgent measures to address what they described as an ‘acute and unprecedented’ rise in prices and shortage of key raw materials, including steel, pig iron, aluminium and copper.

In a representation to Prime Minister Narendra Modi, the Joint Council Associations of Coimbatore said steel prices had risen by around Rs 8,000-10,000 per tonne between August and September 2026, despite wholesale price data showing fluctuations and a decline during the period.

“Though the WPI comparison indicates fluctuations and a decrease in steel prices, the actual market conditions are adverse,” the associations said, warning that the sharp increase was affecting MSME operations and competitiveness in domestic and export markets, the Business Standard reported.

Calls For Temporary Import Duty Relief

The associations sought withdrawal of applicable import and safeguard duties on steel for six months until March 2027 to improve domestic availability and ease production cost pressures arising from strong demand and limited domestic supplies.

They also sought deferment of applicable BIS requirements and Quality Control Orders for imported steel for the same period, saying this would help ensure adequate supplies and prevent further shortages.

The industry bodies proposed a Price Monitoring Committee for steel comprising ministers, ministry officials, major manufacturers, industry associations and MSME representatives. The panel should monitor prices and availability and help prevent “hoarding, cartelisation and abnormal price increases”.

They also sought government intervention to regulate raw material prices through a maximum retail price mechanism, arguing that this would prevent local dealers from charging premium rates.

Measures Sought For Copper, Aluminium

On non-ferrous metals, the associations urged the government to facilitate and encourage imports of copper and aluminium scrap to address shortages.

They also called for measures “at war footing” to come under the OECD framework to secure copper and aluminium scrap from the European Union.

The associations further asked 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 the city and surrounding industrial regions.

Higher Input Costs Hit MSME Production

The associations said rising fuel costs, including diesel, furnace oil and LPG, along with higher raw material prices, had significantly increased MSMEs’ overall production costs.

They urged the government to act urgently to ensure adequate raw material availability, stabilise prices and reduce cost pressures on the sector.

The representation was jointly made by the Institute of Indian Foundrymen, Coimbatore Chapter, Southern India Engineering Manufacturers’ Association, Coimbatore District Small Industries Association, Indian Pump Manufacturers’ Association, Laghu Udyog Bharati, Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association, Indian Chamber of Commerce and Industry, Coimbatore, and Tamilnadu Pumps & Spares Manufacturers Association.

(KNN Bureau)