Micro, small, and medium enterprises (MSMEs) in Ludhiana have urged the government to intervene and regulate steel prices amid growing concerns over volatility and market imbalance. Industrial associations representing the manufacturing and engineering sectors have warned that erratic pricing and limited access to affordable raw materials are threatening the competitiveness and viability of smaller firms.
According to industry representatives, the continuous fluctuation in steel prices has made it increasingly difficult for MSMEs to manage production costs and maintain stable profit margins. Many small-scale units involved in fabrication, auto component manufacturing, and construction supply chains report that sharp price movements have disrupted their operations, delayed orders, and reduced working capital flexibility. This has, in turn, affected their ability to compete both in domestic and export markets.
The associations have alleged that large integrated steel producers exercise significant control over supply and pricing, often leaving smaller consumers vulnerable to high input costs and supply uncertainty. They are calling for the introduction of a regulated pricing mechanism or subsidised steel allocation to ensure a level playing field for downstream industries. Some have also suggested the creation of a dedicated supply pool for MSMEs to guarantee consistent availability of key steel products at fair and transparent rates.
The issue underscores a growing tension between primary steelmakers and smaller end-users within India’s steel value chain. While large mills are focused on managing global competition and maintaining export volumes, smaller manufacturers are struggling to secure affordable raw materials for their day-to-day production needs.
For India’s broader manufacturing ecosystem, ensuring stability in steel pricing and supply is critical. Analysts believe that targeted policy intervention could help strengthen MSME resilience, enhance industrial productivity, and support the country’s long-term goal of building a more inclusive and sustainable manufacturing sector.
