Steel Prices Skyrocket, Coimbatore MSMEs Demand Urgent Aid

Coimbatore-based MSME associations have urgently requested government intervention to address an unprecedented surge and shortage of essential raw materials, including steel, pig iron, aluminium, and copper. Between August and September 2026, steel prices escalated by approximately ₹8,000-10,000 per tonne, contrary to wholesale price index data. This sharp increase significantly affects the operational capacity and market competitiveness of MSMEs in both domestic and export arenas.

Industry bodies have appealed for the temporary withdrawal of import and safeguard duties on steel for six months, until March 2027, to improve domestic availability and reduce production costs. They also seek a six-month deferment of BIS and Quality Control Orders for imported steel to ensure adequate supply. Furthermore, they propose the establishment of a Steel Price Monitoring Committee to oversee availability, prevent hoarding, and control abnormal price hikes.

In addition to steel, associations are urging the government to facilitate imports of copper and aluminium scrap on a war footing to address shortages. They also called for government measures to regulate raw material prices by fixing a maximum retail price. Rising fuel costs, such as diesel and LPG, further exacerbate the increased production costs for MSMEs, prompting calls for immediate government action to stabilize prices and ensure raw material availability.