New Delhi, May 5 -- The recently proposed 12 per cent safeguard duty on imports of non-alloy and alloy steel flat products by the Directorate General of Trade Remedies is expected to significantly affect MSME players in the construction equipment industry.

According to Deepak Shetty, CEO, JCB, spot market prices of steel are projected to increase by Rs 4 to Rs 5 per kilogram. "From the domestic market point of view the cost of the product will go up but it will hit the smaller players more because many of them source steel from the spot market," Shetty explained.

The price increase resulting from the duty could also hamper exports at a particularly challenging time when US tariffs are already creating market uncertainty.

"JCB is export...