COIMBATORE: Nearly 30% of micro, small, and medium enterprises (MSMEs) in Coimbatore have shut down due to an acute shortage of LPG, prompting the Codissia (Coimbatore District Small Industries Association) to seek urgent intervention of the Centre to protect livelihoods of around four lakh workers.In a letter to Prime Minister Narendra Modi, Codissia said the district has about 2.5 lakh MSMEs, many of which depend heavily on LPG for operations using 19 kg, 33 kg, 47.5 kg and 425 kg commercial cylinders. The district consumes around 1.2 lakh 19 kg cylinders every month, including 60,000 for fabrication, laser cutting, powder coating and textile processing, 45,000 for foundry and aluminium units, and 15,000 for food processing.
However, since March 9, Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited had halted supply of commercial cylinders, triggering a severe operational crisis, said Codissia president M Karthikeyan.He said the disruption had already forced nearly 30% of industries to shut down, with more closures likely if supply was not restored. The association urged the Centre to allocate LPG on a rationed basis to sustain operations and prevent job losses.Migrant workers, who had travelled to their native places for the Holi festival, had not yet been asked to return to Coimbatore, industry sources said, easing concerns of large-scale job losses for now. However, they cautioned that if the LPG shortage continued, the situation could worsen, potentially affecting both production and employment in the coming weeks.MSMEs are also grappling with rising input costs. Steel prices have increased by 15%–25% over the past four months, while domestic prices of aluminium and copper have surged by nearly 20%. Prices of plastics, polymers and chemicals have risen by about 25%. Codissia sought abolition of the import duty on raw materials, a ban on steel exports, fixing of MRP for raw materials and formation of a monitoring committee to ensure transparency and prevent hoarding.
