Coimbatore: Around 80 industrial and trade associations have urged the Union govt to temporarily remove safeguard duty on steel imports to stabilize prices and protect the micro, small and medium enterprises (MSMEs) that have been facing mounting cost pressures.The demand was raised during a joint interaction organized by the Indian Chamber of Commerce and Industry and the Coimbatore District Small Industries Association on March 21, when stakeholders from trade, industry and services highlighted key challenges. Participants said safeguard duty had contributed to rising domestic steel prices, worsening the burden on MSMEs already struggling with increased costs of raw materials such as steel, carbide and engineering inputs. With limited pricing power in a competitive market, they said, many units were unable to pass on additional costs to customers. Industries are also facing acute shortage of commercial LPG cylinders, furnace oil and petrochemical-based inputs like paints, red oxide and turpentine, which are critical for processes like gas cutting, powder coating and textile processing, severely affecting production. Associations also flagged severe liquidity stress due to rising input costs and delayed receivables, and urged banks to temporarily enhance working capital limits from about 25% to 40%-50% of turnover. With fuel shortage pushing industries towards electricity, they sought waiver of network and fixed charges for rooftop solar use, deferment of tariff revision, relief in GST compliance and advancement of tax timelines. They emphasized that timely policy intervention was crucial to sustain MSMEs, protect jobs and ensure industrial stability.
