The Union steel ministry's proposal to increase import duties on steel products has raised concerns among micro, small, and medium enterprises (MSMEs) in Coimbatore district. 

The Federation of Coimbatore Industrial Associations (FOCIA) has opposed this move, arguing that it could have adverse consequences for the region's industrial sector.

FOCIA highlighted that MSMEs are major consumers of steel, using it as a raw material to produce components for larger industries. The recent decline in steel prices has provided some respite to MSMEs, enabling them to secure export orders. However, the proposed duty hike threatens to disrupt this positive trend.

The association expressed concerns that MSMEs, which have already accepted orders based on current steel prices, may struggle to fulfill their commitments if the import duty is increased. This could lead to financial losses and operational challenges for these businesses.

FOCIA urged the Union steel and heavy industries minister to reconsider the proposal and refrain from increasing the import duty at this critical time. Instead, the association advocated for a more equitable approach, suggesting that the government should fix a yearly maximum selling price for basic metals like steel, aluminum, and copper to protect MSMEs from price volatility.