Coimbatore MSMEs Seek Steel Price Monitoring Committee as Costs Rise

Coimbatore’s MSME and industrial sector has sought urgent government intervention over rising steel prices and shortages of key raw materials, warning that the situation is putting pressure on manufacturing costs and the competitiveness of small and medium-sized businesses.

In a representation to Prime Minister Narendra Modi, a joint group of industry associations from Coimbatore said steel prices had increased by around ₹8,000–10,000 per tonne between August and September 2026. The associations noted that actual market conditions remained difficult despite wholesale price data showing fluctuations and a decline in steel prices during the period.

The industry bodies said the sharp increase was affecting MSMEs that depend heavily on steel and other industrial raw materials for manufacturing. Higher input costs are making it more difficult for companies to remain competitive in both domestic and export markets.

One of their key demands is the creation of a Price Monitoring Committee for steel. The proposed committee would include ministers, government officials, major steel manufacturers, industry associations and MSME representatives. According to the associations, the committee should monitor steel availability and prices and help address concerns related to hoarding, cartelisation and abnormal price increases.

The associations have also sought the withdrawal of applicable import and safeguard duties on steel for six months, up to March 2027. They said reducing these duties could improve domestic availability and ease pressure on production costs amid strong demand and limited availability from domestic sources.

Another request involves imported steel. The industry bodies have asked for the applicable Bureau of Indian Standards (BIS) requirements and Quality Control Orders to be deferred for six months. They believe the move could help increase supply and prevent further constraints in the domestic market.

The associations have also urged the Ministry of Steel to explore setting up a Steel Authority of India Limited (SAIL) depot in Coimbatore. Such a facility, they said, could help MSMEs in Coimbatore and neighbouring industrial areas access quality steel more easily and on time.

The representation was jointly submitted by several industry organisations, including CODISSIA, the Southern India Engineering Manufacturers Association, the Institute of Indian Foundrymen, the Indian Pump Manufacturers Association, Laghu Udyog Bharati and other regional industry bodies.

The associations also highlighted rising fuel and raw-material costs, saying higher expenses for diesel, furnace oil, LPG, steel, aluminium and copper are adding to the overall cost burden on MSMEs.