Coimbatore-based MSME and industry associations have urged the Centre to take immediate measures to address a sharp increase in the prices and shortage of key raw materials, particularly steel, pig iron, aluminium and copper.
The industry bodies have sought a six-month relaxation of steel import duties and applicable Bureau of Indian Standards (BIS) and Quality Control Orders (QCOs) on imported steel, up to March 2027. They said the measure would improve availability and ease the supply constraints faced by manufacturing units.
Steel prices increased by ₹8,000-10,000 per tonne between August and September, adding significantly to input costs for MSMEs. Industry representatives said the sharp escalation has placed additional pressure on units that have limited scope to pass higher raw material costs on to customers.
The associations have also raised concerns over the availability of steel and other essential industrial inputs. They have asked the government to intervene to ensure adequate supplies of raw materials and prevent further disruptions to manufacturing activity.
The demand for temporary relaxation of import-related duties and quality control requirements is aimed at allowing MSMEs to access additional sources of steel when domestic availability remains constrained. Industry bodies believe this would help moderate price pressures and improve the supply situation.
The issue is particularly significant for Coimbatore’s engineering and manufacturing ecosystem, where MSMEs depend heavily on steel, aluminium and copper for products and components used across several industrial segments.
Industry representatives have previously raised concerns over the impact of safeguard duties on steel imports, saying higher domestic prices have increased the cost burden on smaller manufacturers. They have also pointed to their limited bargaining power and difficulty in passing higher input costs to customers.
The latest representation comes at a time when steel prices have been under pressure from higher input costs and changing supply-demand conditions. Government data shows that the price of HMS II scrap rose 9.6% month-on-month to ₹43,810 per tonne in September from ₹39,970 per tonne in August.
The industry associations have called for urgent policy intervention, arguing that easing raw material availability and controlling cost pressures are necessary to protect the competitiveness of MSME manufacturers in Coimbatore.
They have therefore sought temporary relief on steel imports until March 2027, along with measures to improve the availability of steel, pig iron, aluminium and copper and prevent further escalation in raw material prices.
