Fri Mar 21 14:45:04 UTC 2025: ## Coimbatore MSMEs Protest 12% Safeguard Duty on Steel Imports

**COIMBATORE, March 21, 2025** – Micro, Small, and Medium-scale Enterprises (MSMEs) in Coimbatore are protesting a newly imposed 12% safeguard duty on steel imports, fearing a surge in raw material costs. The Central government’s recent announcement of the duty on steel from countries including China and Vietnam has sparked concerns within the city’s significant engineering manufacturing sector, which heavily relies on steel.

M. Karthikeyan, president of the Coimbatore District Small Industries Association, warned that the added cost, coupled with existing geopolitical challenges, could lead to order cancellations and production cuts for MSMEs. While steel prices in Coimbatore recently decreased by ₹1 per kg, the safeguard duty threatens to reverse this trend, potentially impacting all steel varieties and related products.

The concern is amplified by the fact that Indian steel prices are already 8-9% higher than imported steel. With only a handful of major steel manufacturers in India, MSMEs fear these companies might exploit the safeguard duty to raise prices further, undermining their competitiveness. Karthikeyan urged domestic steel manufacturers to maintain prices to avoid harming the MSMEs. This latest duty follows a previous 5% safeguard duty levied a couple of years ago, compounding the concerns of the already burdened sector.

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