Punjab’s manufacturing MSMEs are facing acute shortage of raw materials as flat steel prices have surged by around ₹10 per kg in just 20 days, compounded by procurement bottlenecks that threaten further price escalation.
Amid this mounting pressure, the Chamber of Industrial and Commercial Undertakings (CICU) has urged the Centre to temporarily waive or substantially relax the safeguard duty on hot-rolled (HR) and cold-rolled (CR) coils, while calling for an immediate review of prevailing steel prices and supply conditions.
The safeguard duty was introduced in April 2025, when the government imposed a 12% duty for 200 days on specified flat steel imports. The measure was subsequently continued under a three-year structure, fixed at 12% in the first year, 11.5% in the second, and 11% in the third year. While the policy was aimed at protecting
domestic steel producers from cheaper imports, CICU stated that it is now creating difficulties for downstream industries that rely heavily on HR and CR steel as their primary raw material.
International HR coil prices hover around $530 to $550 per tonne, whereas domestic prices have crossed $640 per tonne. Despite this substantial price gap, manufacturers report struggling to procure sufficient material from the domestic market.
CICU president Upkar Singh Ahuja said the impact is being felt across multiple steel-dependent sectors, including engineering, auto components, bicycles, fasteners, fabrication, machinery, and electrical equipment. Rising input costs are squeezing already thin margins, making it difficult for MSMEs to remain competitive in both domestic and export markets.
Ahuja said the government’s initial objective to protect domestic steel producers from cheaper imports was understandable, but stated that the policy now requires reassessment.
“When the safeguard duty was introduced, the concern was cheaper imports and protection of the domestic steel industry. Today, the situation has become different. Our MSMEs are paying a much higher price for steel, and even after paying that price, they are struggling to get material. This is directly affecting their production, orders, employment, and exports,” Ahuja said.
“If international HR coil prices are around $530 to $550 per tonne while Indian prices have crossed $640 per tonne, the government must examine why such a wide gap exists. MSMEs cannot continuously absorb ₹10 to ₹15 per kg increases in their raw material cost,” he added.
Ahuja urged the ministry of finance, ministry of steel, and ministry of commerce and industry to intervene and consider a temporary waiver or substantial relaxation of the safeguard duty until prices and availability stabilise. CICU has also called for close monitoring of domestic steel production, pricing, and supply practices.
Ahuja further added, “Indian MSMEs need competitive raw material prices to compete with manufacturers globally. Protecting manufacturing employment and exports must remain at the centre of the policy.”
Industry body hosts business dialogue with Portugal
The Chamber of Industrial and Commercial Undertakings (CICU) on Wednesday hosted a business dialogue with Portugal at the CICU Complex, Focal Point, offering local industrialists a platform to explore trade, investment, and export opportunities with the European nation.
Organised in partnership with the Portuguese Trade and Investment Agency (AICEP), the event drew wide participation from business representatives eager to tap into the Portuguese market.
The session featured addresses by Miguel CM Crespo, economic and trade counsellor at the embassy of Portugal in India, and Deeksha Chawla, senior trade and investment officer at AICEP New Delhi.
CICU senior vice-president JS Bhogal delivered a presentation highlighting Punjab’s industrial strengths and the roadmap for expanding international business linkages.
Emphasising the need for global diversification, Bhogal said, “Punjab has a strong manufacturing base and a large pool of capable MSMEs. Our objective is to connect this industrial strength with new international markets. Portugal can provide an important platform for Indian businesses to explore trade, investment, and strategic partnerships.”
CICU general secretary Honey Sethi highlighted the value of connecting local manufacturing with overseas institutions.
Tarsem Singh Deogan is the Bureau Head of Hindustan Times in Ludhiana, a position he has held since 2023. With over 26 years of experience in active journalism, he has built a reputation for in-depth and ground-level reporting. He extensively covers crime, courts, district administration and political affairs, keeping a close watch on developments that shape public life. When not reporting on news and current affairs, he enjoys exploring the hills on his superbike and pursuing wildlife photography.Read More