Industrialists seek revival of PSIEC raw material supply scheme

Ludhiana: Industrialists and trade associations have urged the Punjab Small Industries & Export Corporation Ltd. (PSIEC) to revive its raw material supply scheme to support micro, small and medium enterprises (MSMEs). They said frequent fluctuations in steel prices have placed smaller units at a disadvantage against large corporate buyers, making subsidised raw material supply critical.Badish Jindal, president, World MSME Forum, said that under the erstwhile Joint Plant Committee (JPC) discount regime, PSIEC and the National Small Industries Corporation (NSIC) procured steel and allied materials in bulk and passed on significant price benefits to MSMEs. "Under that system, PSIEC and NSIC were able to pass a portion of the JPC discount on to MSMEs," Jindal said. He added that termination of JPC's discount mechanism left PSIEC with no incentive to maintain large raw material stocks for onward supply to smaller industries. The JPC, under the Ministry of Steel, has historically guided production, allocation and pricing of iron-steel products.Pankaj Sharma, president, Association of Trade and Industrial Undertakings, said one of PSIEC's prime functions—provisioning high-demand steel and materials at stable prices and in flexible quantities—has been "virtually nullified." He pointed to extensive PSIEC godowns across the state that now lie largely unused or stocked with outdated material unsuitable for current industrial requirements. "The objective behind PSIEC's formation was to supply critical raw material at subsidised and stable prices even to small manufacturers," Sharma said, adding that failure to do so undermines MSME competitiveness.Industry representatives noted that PSIEC's current operations are largely limited to land and infrastructure services, including development of industrial focal points, real estate management, and export promotion. While valuable, these activities do not address the immediate raw material crunch faced by MSMEs. Established in 1962, PSIEC's mandate included distribution of iron and steel materials, promotion of exports, and marketing of products from small units.Industrialists said the corporation has been winding down its raw material depots, which is a blow to the state's steel-consuming MSME sector. They pointed out that steel prices available directly to MSMEs from major plants can be Rs 1,500 to Rs 2,700 per tonne higher than rates previously accessible through PSIEC distribution—a gap that significantly impacts small producers' cost structures.Attempts to reach PSIEC managing director Surabhi Malik and general manager Sanjiv Walia for comment were unsuccessful.