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Stainless steel industry urges Government for level playing field

Stainless steel industry has been bogged down by an unprecedented surge in imports in last three years especially from China. To remain globally competitive Indian industry needs a level playing field.

S. Bhattacharya        Last Updated: January 30, 2017  | 19:38 IST
Stainless steel industry urges Government for level playing field
S. Bhattacharya, Director - Jindal Stainless Limited

Stainless steel industry has been bogged down by an unprecedented surge in imports in last three years especially from China. To remain globally competitive Indian industry needs a level playing field.

The industry recorded highest ever imports of 5,32,033MT in 2015-16. Out of this, 2,76,456 MT came from China accounting for more than 50% of the import basket.
 
Domestic industry is at a disadvantage due to lower duty rates on finished goods (at 7.5% against 10% in China) and high duty rates on key raw material like Ferro Nickel, Nickel, Ferro Moly etc (2.5% - 5% against Nil duty in China).
 
Stainless Steel industry urges the Government to increase the Basic Customs Duty (BCD) on stainless steel flat products from the current level of 7.5% to 12.5% and bring it at par with other steel products (on which there has been a duty increase of 2.5% twice each in 2015). Stainless steel was excluded from the Minimum Import Price (MIP) as well which was notified in Feb 2016 to help domestic producers.
 
Therefore, there is an urgent need to rationalise duty rates on stainless steel products as well as on key raw materials.

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Tags: Budget | Steel
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