War impact: MSMEs in Coimbatore face rise in input costs
The ongoing conflict in West Asia is causing a rise in input costs for MSMEs in Coimbatore, impacting their operational capacity. Currently, these enterprises are functioning at only 50% capacity due to increased prices and supply issues. Industry leaders are calling for government support to alleviate financial stress and improve conditions for local businesses.
- ▪MSMEs in Coimbatore are operating at just 50% capacity due to rising input costs.
- ▪Prices for ferrous and non-ferrous items have nearly doubled since February.
- ▪There are significant availability issues for essential oils used in industries, with supply drastically reduced.
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| Original publisher | The Hindu — Top |
| Canonical URL | https://www.thehindu.com/news/cities/Coimbatore/war-impact-msmes-in-coimbatore-face-rise-in-input-costs/article71007094.ece |
| Publication time | Thu, 21 May 2026 20:29:44 +0530 |
| Retrieval time | 2026-05-21T15:06:11.139Z |
| Last seen | 2026-05-21T15:06:11.139Z |
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Opening excerpt (first ~120 words) tap to expand
With the west Asia war continuing and fuel prices increasing across India, cost of several inputs has increased for the engineering sector and the Micro, Small, and Medium-scale Enterprises (MSMEs) in Coimbatore.According to M. Karthikeyan, president of the Coimbatore District Small Industries Association (CODISSIA), the MSMEs are currently operating at just 50% capacity and may see capacity utilisation picking up soon. They were operating 70% of the capacity a couple of months ago. Industries that were exporting to or through the west Asian countries had no option but to pay high demurrage charges because of the war there. The increasing input costs have created a financial stress for industries.
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