: The Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore have demanded withdrawal of 12% safeguard duty on steel imports fearing increase in raw material prices in the domestic market.
The Central government recently announced 12% safeguard duty on all steel imports, including shipments from China and Vietnam.
“The MSMEs are hit by geo political developments and if the raw material prices go up, these units will lose orders. The domestic steel manufacturers should not increase the prices,” said M. Karthikeyan, president of the Coimbatore District Small Industries Association.
Steel prices reduced by ₹1 a kg in Coimbatore on Thursday. The prices declined during the last six months. However, levy of the safeguard duty poses risk of hike in prices for all varieties of steel and steel products. Coimbatore is a major hub for engineering manufacturing and steel is a major raw material used by the MSMEs. Hike in raw material prices will hit production in these units, he said.
About a couple of years ago, the government levied 5% safeguard duty. Now, it has levied 12%. This will impact the MSMEs in the engineering sector, he said.
According to an engineering exporter, Indian steel prices are 8%-9% higher compared with prices of imported steel. There are a just half a dozen steel majors in the country and with the safeguard duty in place, there is a possibility of these industries increasing the prices.
The steel manufacturers should maintain the prices at such a level that the competitiveness of the MSMEs is not affected, he said.
Published – March 21, 2025 08:15 pm IST
