“The yard, which was closed in 2015 to pave way for the construction of the railway over bridge, still remains shut despite the completion of works. It should be reopened to tide over the shortage of raw materials. Also, the Union and state governments should intervene to save the MSME sector by allowing import of metals and minerals,” said R Ramamurthy, president of CODISSIA in a representation to Minister for Petroleum, Natural Gas and Steel, Dharmendra Pradhan, Minister for MSMEs Nitin Gadkari and Finance Minister Nirmala Sitharaman.

Steel prices have increased from Rs 37,000 per tonne to Rs 47,000 per tonne in the past six months. Other foundry items like pig iron, cast iron, steel scrap, copper and aluminium have also increased by 30 per cent to 35 per cent post lockdown due to COVID-19. There is also a shortage of raw materials such as steel, copper, Zinc and brass. Zinc prices have risen from Rs 170 a kg to Rs 220 a kg, resulting in a hike in prices of end products, he added. “The MSMEs will cease to exist, if necessary corrective action is not taken to control increasing prices of raw materials and other allied materials. MSMEs have already suffered due to the impact of COVID-19. In addition, the sector is facing cancellation of orders, uncertainty of consumption in the market and declining exports due to increase in prices of raw materials. Already, thousands of MSMEs couldn’t execute the pending orders due to shortage of raw materials,” said Ramamurthy.

Even the 20 per cent loan sanctioned to MSMEs by banks under the Guaranteed Emergency Credit Line Scheme under Aatma Nirbhar Bharat has been completely absorbed due to the steel price increase, he added.

Coimbatore is a manufacturing hub powered by MSMEs.