FICO Urges Centre to Regulate Steel Prices, Warns of MSME Shutdowns
April 6, 2026
Ett News / Ludhiana
The Federation of Industrial & Commercial Organization (FICO) on Monday urged the Central Government to regulate rising steel and raw material prices, warning that the sharp increase is pushing Micro, Small and Medium Enterprises (MSMEs) towards a serious financial crisis.
Raising the issue with Union Steel Minister H.D. Kumaraswamy, FICO said downstream manufacturers, especially those in the MSME sector, are struggling to survive as the cost of production continues to rise while buyers remain unwilling to accept higher prices for finished goods.
FICO president Gurmeet Singh Kular said the abnormal increase in steel and other raw material prices has placed many small manufacturing units on the verge of closure. He said MSME industries are finding it increasingly difficult to absorb the burden of higher input costs in the absence of matching returns from the market.
Kular also demanded that the government introduce an emergency financial support scheme for MSME manufacturers on the lines of the relief measures announced during the Covid period. He said such intervention is necessary to prevent industrial distress and protect small businesses from shutting down.
FICO general secretary Manjinder Singh Sachdeva said steel prices have increased by at least Rs 10 per kg, which has significantly affected manufacturing viability. He added that the prices of non-ferrous metals such as nickel, titanium, chromium, aluminium, copper and zinc have also remained volatile and unchecked.
Sachdeva said there is an urgent need for a regulatory mechanism to ensure rational pricing of steel and other industrial raw materials in the country. He said stabilising commodity prices would help Indian MSME manufacturers remain competitive and sustain production.
FICO maintained that if immediate corrective steps are not taken, the continued rise in raw material prices could severely impact the MSME sector, which forms a crucial part of India’s industrial economy.
Fico steel prices msme industry steel price hike raw material prices gurmeet singh kular manjinder singh sachdeva h d kumaraswamy
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