The Coimbatore District Small Industries Association (CODISSIA), representing MSMEs in Coimbatore, has written to Narendra Modi, noting the challenges faced by the sector due to ongoing geopolitical uncertainties.
In the letter, CODISSIA President Karthikeyan stated that essential inputs such as LPG cylinders, raw materials, and working capital are highly interdependent for MSME operations. Any disruption in their availability affects the entire supply chain, significantly increasing production costs. This, in turn, places severe pressure on MSMEs and, in many cases, forces them to shut down operations.
He also detailed the issues related to LPG supply and offered suggestions to address them in the letter.
The president has stated that Coimbatore is home to around 2.5 lakh MSMEs, many of which rely heavily on LPG for industrial operations. The consumption of LPG is substantial, particularly through the use of 19 kg, 33 kg, 47.5 kg, and 425 kg commercial cylinders.
MSMEs and other industries in Coimbatore consume approximately 1.2 lakh 19 kg commercial LPG cylinders every month. Of these, around 60,000 cylinders are used by fabrication, laser cutting, powder coating, and textile processing industries. About 45,000 cylinders are consumed by foundry, aluminium, and allied industries, while nearly 15,000 cylinders are utilised by the food processing sector.
However, since March 9, 2026, LPG suppliers such as Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, and Hindustan Petroleum Corporation Limited have completely stopped supplying commercial cylinders to industries. This has resulted in a severe operational crisis for MSMEs across Coimbatore.
The ongoing disruption has already forced nearly 30 % of industries to shut down due to the non-availability of LPG. If the situation continues, many more units may be forced to cease operations, potentially affecting the livelihoods of nearly 4 lakh people dependent on these industries.
To address the crisis, CODISSIA president has suggested that LPG cylinders be allocated on a rationed basis to MSMEs. This, the association noted, would help industries continue operations and prevent large-scale job losses.
Similar to the LPG issue, CODISSIA president Karthikeyan also detailed the challenges faced by MSMEs in the availability of raw materials and working capital, and put forward suggestions to address these issues.
