Micro, Small and Medium Enterprises (MSMEs) in Coimbatore are under financial strain due to sharp rises in prices of key industrial raw materials such as steel, pig iron, copper, and aluminium, along with increased costs of diesel, furnace oil, and LPG.
The Joint Council of Associations of Coimbatore termed this surge as “acute and unprecedented” and urged the Centre to act swiftly to curb the rising prices of steel and metals.
In a memorandum to Prime Minister Narendra Modi, the industry body highlighted that escalating input costs are causing severe stress on MSMEs, threatening their viability, competitiveness, and operational sustainability. They requested measures to stabilise raw-material prices, improve domestic availability, and to consider reducing import duties on steel and key metals to ease manufacturers' cost pressures.
Industry representatives warned that ongoing increases in essential raw-material and energy costs could reduce operating margins, slow production, and hinder smaller units from competing effectively in domestic and export markets. They called for timely, comprehensive policy support to stabilise input costs and protect the MSME sector, vital for industrial activity, employment, and exports.
For Coimbatore’s engineering and manufacturing-focused MSMEs, continued metal and energy price hikes risk elevating production costs and endangering smaller businesses' financial health. The sector’s appeal focuses on government intervention to control input costs and help MSMEs sustain their market presence and competitiveness.
