Steel industry in Gujarat, which manufactures 50 per cent of pipes and tubes produced in India, has sought increase in the anti-dumping duty levied on cheap imports from China and Vietnam. The imports, particularly from China, have increased more than three-fold in the past three months at 13,000 metric tonne in July compared to 3,784 metric tonne in April. Out of 40,000 metric tonne consumption of steel pipes and tubes in India, Gujarat accounts for 20,000 metric tonne production.
Countries impose anti-dumping duties to guard domestic industry from surge in below-cost imports. Kushal Agrawal, secretary of Stainless Steel Pipes and Tubes Manufacturers Association and director of Suman Steel, said the local industry has taken it on the chin due to cheap Chinese imports. “There are about 30,000 people employed in the steel industry in Gujarat. Due to low demand of locally made products, close to 20 per cent jobs have been affected. The government earns Rs 2,000 crore GST from the Rs 10,000 crore industry.”
The central government imposed anti-dumping duty on certain steel products in May 2016 but local manufacturers contend that it’s not sufficient. The association is looking at equal opportunity for the local players via increase in the anti-dumping duty. The association members met on Friday to deliberate on the issue and pursue the matter with the government. Ashish Sanghavi, owner of Raajratna Steel, commented, “We have requested the government to impose anti-dumping duty on steel pipes and tubes which has not been done so far.”
Shailesh Patwari, President of Gujarat Chamber of Commerce and Industry, said, “It is a major issue with several industries and not limited to just steel pipes. Other major sectors of Gujarat like textile and ceramic are also suffering. We have raised our concern with the Prime Minister.” Anti-dumping steps are taken by Directorate General of Antidumping and Allied Duties (DGAD) to ensure fair trade for the domestic industry.