Coimbatore MSMEs urge removal of steel safeguard duty

Micro, Small and Medium Enterprises (MSMEs) in Coimbatore are calling for the removal of a new 12% safeguard duty on steel imports. They fear this duty will lead to higher raw material prices, making it harder for them to compete. The Central government imposed this duty on all steel imports, including those from countries like China and Vietnam. M. Karthikeyan, president of the Coimbatore District Small Industries Association, expressed concerns over the impact of rising prices on local businesses. He highlighted that geopolitical issues are already affecting these enterprises. Recently, steel prices in Coimbatore fell by ₹1 per kg, continuing a downward trend over the past six months. However, the new duty could reverse this trend, risking price increases across various steel products. Many MSMEs in the region rely heavily on steel for their manufacturing processes. A few years ago, the safeguard duty was only 5%, but it has now risen to 12%. This increase may significantly affect companies in the engineering sector. An engineering exporter noted that domestic steel prices are already about 8%-9% higher than imported steel prices. With fewer major steel manufacturers in India, there is concern that they might raise prices due to the new duty. Karthikeyan urges steel manufacturers to keep prices stable to ensure that MSMEs can remain competitive in the market.