Industrial leaders in Punjab's manufacturing hub of Ludhiana have issued an urgent appeal for government action to control the wildly fluctuating prices of steel, which they say are severely damaging the sector's viability.
Steel Price Surge Cripples Manufacturing Planning
The All Types of Industries Association (ATIU) has highlighted a critical situation where abrupt and frequent changes in steel rates are putting manufacturers, particularly Micro, Small, and Medium Enterprises (MSMEs), at a massive disadvantage. Pankaj Sharma, president of ATIU, revealed a steep price increase of nearly Rs 4,000 per metric tonne in just the last 15 days. This sudden jump affects key raw materials like ingots, HR (Hot Rolled), CRC (Cold Rolled Coil), and pig iron, which are essential for Ludhiana's famed manufacturing units producing bicycle parts, auto components, sewing machine parts, and hand tools.
Sharma attributed the crisis to the absence of any effective government control or regulatory mechanism. This vacuum, he argued, has allowed major steel producers to collude and sell material at arbitrary rates, creating serious financial stress for smaller players.
Call for Regulatory Authority and Essential Commodity Status
The association has made a formal plea to the government. They are urging the formation of a dedicated regulatory authority to continuously monitor steel prices. Furthermore, they have recommended that steel, particularly construction-grade steel, be declared an essential commodity, given that its price directly impacts both industry and the common man.
Sharma warned that the unchecked price environment is fostering malpractices like black marketing and hoarding. He noted that these activities are often facilitated through social media platforms, leading to significant losses and harassment for MSMEs with limited capital reserves.
Impossible Business Environment for MSMEs
Anil Sachdeva, Senior Vice-President of ATIU, explained the operational nightmare caused by such erratic pricing. He stated that constant fluctuations make it impossible for industries to plan their production cycles or formulate stable pricing strategies for their own customers. Compounding the problem is a mismatch in expectations: while customers insist on postponing any price revisions until the next financial quarter, steel manufacturers demand immediate price increases and often refuse to supply material without revised purchase orders.
Echoing these concerns, exporter Sarabjit Singh shared that steel prices can change multiple times within a single day, causing major logistical and financial inconvenience. "We even held a dharna once demanding price stability," Singh recalled. "The government should declare a fixed price for at least a quarter or a few months to allow businesses to function."
The collective demand from Ludhiana's industrial ecosystem is clear: immediate regulatory intervention to bring stability to the steel market, which forms the backbone of the region's manufacturing economy and supports countless livelihoods.
