Stop steel exports at lower than domestic price

Steel consumers, who are feeling the pinch of high price of the metal in the Indian market, have demanded a policy intervention from the Centre to prevent steel producers from exporting steel below the domestic prices. Several industry bodies have written to Prime Minister Narendra Modi seeking his intervention. “The domestic steel should be supplied to the downstream industry at a price which is at par with international price,” said the Federation of Industry and Commerce of North Eastern Region (FINER), an apex industry association of the region in a statement. The Federation of Industries of India also demanded “steel should be supplied to the downstream industry at a price that must at least be equal to the price, at which the domestic steel mills export the metal.” Steel consumers associations have also strongly opposed the call from primary manufacturers to impose a 25 per cent safeguard duty saying, the move will only increase prices and impact the economy badly. Indian Steel Association had sought a 25 per cent safeguard duty on imports to curtail dumping after the US and the EU (European Union) set up tariff and quota barriers. The FINER also highlighted that any imposition of an additional duty in any form on steel goods will have a “retrograde effect” on the downstream industries and millions of labourers will become jobless, defeating the objective of the government to create jobs.