New Delhi, Sept. 22 -- A new government quality control order on steel is pitting India's micro, small, and medium enterprises against regulators, with importers claiming the measure has triggered a sharp rise in domestic prices and supply shortfalls.

In a letter dated 17 September, the Metals and Stainless Steel Merchant's Association (Massma) has asked the ministry of steel to allow exemptions for shipments for which advance payments were made before the quality control order (QCO) took effect in June. Mint has reviewed a copy of the letter.

The importers argue the new rule, which requires all foreign steel mills to secure approval from the Bureau of Indian Standards (BIS), has created a non-tariff barrier and caused Indian prices for...