New Delhi, Jan 29 (KNN)Indian micro, small and medium enterprises (MSMEs) in the steel sector are reporting shipment seizures, order cancellations and rising compliance burdens since the European Union’s Carbon Border Adjustment Mechanism (CBAM) entered its payment phase on January 1, 2026.
CBAM, a carbon levy on imports of high-emission goods such as steel, cement and aluminium, requires carbon reporting and payment for imports exceeding 50 tonnes per year. India was unable to secure any concession on CBAM in its free trade agreement with the EU signed on January 27, reported Business Standard.
According to Nilesh Bhattad, founder, CleanCarbon.ai, at least 10 Indian consignments have been held at European ports this month over missing or incomplete carbon declarations.
One Mumbai-based tractor exporter saw a shipment stuck in Poland, leading to heavy detention charges, while another lost a 7,000-tonne steel order after CBAM added Rs 5–6 crore to costs, making the deal unviable.