Over 100 MSME players of the stainless steel sector have urged the government to reintroduce the quality control order, citing a surge in Chinese imports after the order was revoked to ease the sourcing of raw material for domestic manufacturing.

The steel ministry, through an order dated April 27, suspended the quality control order (QCO) that mandated the use of only BIS-certified items for various stainless steel products. The move was aimed at easing the compliance burden for local producers, especially micro, small and medium enterprises (MSMEs).

However, MSMEs of the stainless steel industry have raised concerns over the steep rise in imports of stainless products following the suspension of the QCO.

"The suspension of QCO has opened the door for a surge of low-priced imports from China, placing domestic MSME manufacturers under severe pressure and threatening thousands of jobs and substantial investments made by Indian entrepreneurs," industry bodies Stainless Steel Induction Furnace Association and Stainless Steel Re-Rollers Association said in a letter to the steel ministry.

Citing official data, they said that stainless steel imports in April 2026 at 101,252 metric tonnes registered a 65 per cent year-on-year jump from 61,143 metric tonnes reported in the corresponding month a year ago.

On a month-on-month basis, imports were 69 per cent higher compared to 59,917 metric tonnes in March 2026.

Members of the industry bodies have also warned that the import numbers may continue to rise if no intervention measures are taken by the government.

In the letter to the ministry, the MSME players have highlighted that investments and jobs are at risk under such circumstances.

The associations highlighted that Chinese stainless steel products are entering the Indian market at predatory prices, creating an uneven competitive environment for domestic manufacturers who comply with Indian quality standards, environmental regulations and employment obligations.

"Relying on the government's policy direction and commitment towards strengthening domestic manufacturing under the 'Make in India' initiative, many MSME units invested significantly in capacity expansion, technology upgrades, quality improvement and employment generation," a member of Stainless Steel Induction Furnace Association said.

Published on June 25, 2026