Coimbatore MSME Association urges Union government to control prices of key raw materials

Coimbatore: The Coimbatore MSME Association on Monday urged the Union government to regulate the prices of key raw materials such as steel, copper and aluminium, to protect micro, small and medium enterprises (MSMEs) from mounting cost pressures.At a meeting held on Monday at Avarampalayam in the city, the association discussed the current industrial scenario and the challenges faced by MSMEs. Two key resolutions were adopted at the meeting.
Citing the sharp rise in raw material prices, the association said MSME units were facing severe strain as costs of steel, copper and aluminium continue to increase daily. It urged the Centre to introduce measures to stabilize prices and ensure a uniform pricing mechanism for at least a year. The association also called for the establishment of a "raw material bank" to support MSME units. MSMEs contribute 31% of India's GDP, account for 48% of exports, and provide employment to nearly 18 crore people. Coimbatore holds a significant position in the MSME sector, with industries manufacturing pump-sets, motors, electrical machinery, compressors and automobile components. These sectors rely heavily on steel, copper, and aluminium as primary inputs. In another resolution, the association urged the Centre to ensure reciprocal benefits in the proposed US–India trade agreement. It stated that if India considers 0% import duty on goods from the United States, it should also secure 0% duty access for Indian exports to the US. The meeting also highlighted the acute shortage of skilled workers in micro-scale units in Coimbatore. MSME Association president T Mani said there was an urgent need to establish dedicated skill training institutions to create industry-ready manpower for MSME units.