Ludhiana: Ludhiana industrialists and micro, small, and medium enterprises (MSMEs) are facing financial distress due to a sharp rise in raw steel prices, prompting demands for urgent govt intervention.The Federation of Industrial & Commercial Organisation (FICO) has called on the Union steel ministry and the Government of India to establish a regulatory committee to monitor and regulate steel prices, transparently fix profit margins, and keep rates at reasonable levels.Industrialists highlighted that basic raw material costs have spiked dramatically in recent weeks. Prices of steel increased by ₹3 per kg over the past fortnight, rising from ₹54 to ₹57–₹58 per kg, while cold headed quality wires—critical for bicycle and fastener manufacturers—rose from ₹52 to ₹60 per kg. Overall, steel prices have jumped by 15% in the last three months.The price volatility is hitting MSMEs particularly hard as they operate on thin profit margins. Manufacturers who accepted orders at earlier rates are now forced to procure raw materials at much higher prices, erasing profits and causing heavy financial losses.Additionally, industry leaders pointed out that distributors holding back inventory and adding high markups have further inflated costs, undermining the global competitiveness of Indian manufacturers against rivals from China and Taiwan—despite India having abundant iron ore resources.“Steel prices should be regulated through a proper regulatory authority so that the MSME sector can survive. The frequent increase in prices is making it extremely difficult for industries to operate,” said FICO president Gurmeet Singh Kular.
