Punjab industrialists hails Centre’s decision to waive custom duty on import of some raw materials used by steel industry

The state industry has hailed Centre’s decision to waive off custom duty on import of some raw materials, including coking coal and ferronickel, used by steel industries as it will lower the cost for domestic industries.

The MSME sector has been struggling to meet the market demands due to the rising prices of steel, with many sectors reducing production to cut down losses. While prices of bicycles had witnessed a 30 percent hike over the past one year, the sewing machine industry had cut down production owing to rising prices of steel.

Chamber of Industrial and Commercial Undertaking (CICU) president Upkar Singh Ahuja said the decision will give a major boost to the Ministry of Medium, Small and Macro Enterprises (MSMEs).

The CICU has also urged the government to direct large steel producers to pass on benefits to MSMEs as major producers of steel are yet to announce new rates. However, local stockists have started selling steel at reduced rates now.

Earlier this month, representatives of Ludhiana industry had met minister of commerce and industry Piyush Goyal, steel minister Ram Chandra Prasad Singh and minister of MSME Narayan Tatu Rane and put forward their suggestions to lower the prices of steel.

Rather than the export of steel, the government must focus on export of finished products and same was accepted by the steel minister during the meeting. Moreover, it will give a boost to Indian MSMEs, generate employment, increase tax collection as well as provide scores of other benefits.

As a result, prices of steel have gone down in the open market and stockers having high level stocks have started desperate sales. However, big production houses are yet to announce the revised prices. For reference, Steel ingot indicative prices have reduced from 53000 PMT to 50000 PMT in Mandi Gobindgarh market, he said.

The import duty on ferronickel, coking coal, PCI coal has been cut from 2.5 per cent, while the duty on coke and semi-coke has been slashed from 5 per cent to ‘nil’.

The tax on the export of iron ores and concentrates has been hiked to 50 per cent, from 30 per cent, while that on iron pellets, a 45 per cent duty has been imposed.

Gurmeet Singh Kular, president, Federation of Industrial and Commercial Organisation (FICO), said it was their long pending demand to reduce exports of raw material used to make steel.

“It will definitely reduce the cost of product and we welcome the decision. Even diesel and petrol prices have been reduced but much more needs to be done to promote the MSME sector,” he said.