Coimbatore MSMEs seek easier aluminium scrap imports amid raw-material pressure
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Coimbatore-based MSME and industry associations have urged the Government of India to facilitate and encourage imports of aluminium scrap, citing reported shortages of essential metals and rising production costs affecting local manufacturers.
In a representation sent to Prime Minister Narendra Modi, the associations identified aluminium, steel, copper and pig iron among raw materials facing supply pressure and price volatility. While the representation described the broader situation as an “acute and unprecedented” increase in prices and shortages, the report specifically quantified the recent price rise only for steel, which reportedly increased by around INR 8,000–10,000 (USD 83.07–103.83) per tonne between August and September 2026.
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Aluminium scrap imports sought
The industry bodies specifically asked the government to encourage imports of aluminium and copper scrap to improve raw-material availability for MSMEs. They also urged action to bring India under the Organisation for Economic Co-operation and Development framework, which they said could help secure copper and aluminium scrap supplies from the European Union (EU).
The appeal reflects the importance of secondary metal for Coimbatore’s foundry, engineering, pump, casting and manufacturing businesses, where scrap availability can influence input costs and production continuity.
Cost pressures widen
The associations said higher raw-material prices were being compounded by rising costs for diesel, furnace oil and LPG, increasing overall production costs and weakening the competitiveness of MSMEs in domestic and export markets. They further called for a price-monitoring mechanism and proposed a maximum retail price for raw materials to curb premium pricing by local dealers.
The representation was submitted jointly by organisations including the Institute of Indian Foundrymen, Coimbatore Chapter, the Southern India Engineering Manufacturers’ Association, the Coimbatore District Small Industries Association, the Indian Pump Manufacturers’ Association and other regional industry bodies.
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