At a joint meeting in Coimbatore, over 80 industry associations urged government support citing fuel shortages, rising raw material costs and financial stress impacting MSMEs across the region.
Coimbatore:
Industry and trade associations in Coimbatore have jointly urged the government to extend immediate policy and financial support to Micro, Small and Medium Enterprises (MSMEs) facing mounting challenges due to rising input costs and supply disruptions.
The concerns were raised during a joint interaction meeting organised by the Indian Chamber of Commerce and Industry, Coimbatore (ICCIC) and CODISSIA, which saw participation from around 80 associations representing trade, industry and service sectors.
A major issue highlighted was the disruption in supply of critical industrial inputs such as commercial LPG cylinders, furnace oil and petrochemical-based products including paints, red oxide and turpentine. These shortages have affected key manufacturing processes like gas cutting, powder coating and textile operations, impacting production across sectors.
Associations also pointed to a sharp rise in raw material costs, particularly steel and engineering inputs, which has increased financial pressure on MSMEs. With intense market competition, many units are unable to pass on these increased costs to customers.
The industry bodies further raised concerns over the safeguard duty on steel imports, stating that it has contributed to higher domestic prices. They have requested the government to consider temporarily removing the duty to stabilise costs.
Liquidity constraints have also emerged as a major challenge, with MSMEs facing working capital shortages due to rising expenses and delayed payments. Associations have urged banks to increase working capital limits from the current level of around 25 percent of turnover to 40–50 percent on a temporary basis.
To ease financial stress, a request has been made for interest subvention support to bring down borrowing costs to around 7 percent, compared to the current rates of 9 to 12 percent.
With fuel shortages forcing industries to shift towards electricity, associations have also sought relief in power tariffs. Key demands include waiver of network charges for rooftop solar usage, waiver of fixed and maximum demand charges, and postponement of proposed tariff hikes.
In addition, industry representatives have requested relaxation in statutory compliance requirements, including extensions for GST filings and advance tax payments, to help businesses manage cash flow more effectively.
The associations also stressed the need for ensuring uninterrupted and equitable supply of fuel and petrochemical inputs to prevent further disruption to industrial activity.
On behalf of all participating bodies, ICCIC and CODISSIA have jointly represented these demands to the Government of India, emphasising that timely intervention is crucial to sustain MSME operations, protect employment and maintain industrial stability in the region.
Industry and trade associations in Coimbatore have jointly urged the government to extend immediate policy and financial support to Micro, Small and Medium Enterprises (MSMEs) facing mounting challenges due to rising input costs and supply disruptions.
The concerns were raised during a joint interaction meeting organised by the Indian Chamber of Commerce and Industry, Coimbatore (ICCIC) and CODISSIA, which saw participation from around 80 associations representing trade, industry and service sectors.
A major issue highlighted was the disruption in supply of critical industrial inputs such as commercial LPG cylinders, furnace oil and petrochemical-based products including paints, red oxide and turpentine. These shortages have affected key manufacturing processes like gas cutting, powder coating and textile operations, impacting production across sectors.
Associations also pointed to a sharp rise in raw material costs, particularly steel and engineering inputs, which has increased financial pressure on MSMEs. With intense market competition, many units are unable to pass on these increased costs to customers.
The industry bodies further raised concerns over the safeguard duty on steel imports, stating that it has contributed to higher domestic prices. They have requested the government to consider temporarily removing the duty to stabilise costs.
Liquidity constraints have also emerged as a major challenge, with MSMEs facing working capital shortages due to rising expenses and delayed payments. Associations have urged banks to increase working capital limits from the current level of around 25 percent of turnover to 40–50 percent on a temporary basis.
To ease financial stress, a request has been made for interest subvention support to bring down borrowing costs to around 7 percent, compared to the current rates of 9 to 12 percent.
With fuel shortages forcing industries to shift towards electricity, associations have also sought relief in power tariffs. Key demands include waiver of network charges for rooftop solar usage, waiver of fixed and maximum demand charges, and postponement of proposed tariff hikes.
In addition, industry representatives have requested relaxation in statutory compliance requirements, including extensions for GST filings and advance tax payments, to help businesses manage cash flow more effectively.
The associations also stressed the need for ensuring uninterrupted and equitable supply of fuel and petrochemical inputs to prevent further disruption to industrial activity.
On behalf of all participating bodies, ICCIC and CODISSIA have jointly represented these demands to the Government of India, emphasising that timely intervention is crucial to sustain MSME operations, protect employment and maintain industrial stability in the region.