Govt to take steps against steel dumping into India
BY PTI28 Aug 2015 12:40 AM GMT
PTI28 Aug 2015 12:40 AM GMT
The minister also said the government is seized of the issues impacting the steel sector and will take a decision <g data-gr-id="36">in appropriate</g> time, including on import duties. The industry has been demanding <g data-gr-id="40">further</g> hike in import duty on steel products. “We are closely monitoring the situation and are in consultation with the Ministries of Finance and Commerce and the Prime Minister to decide and reconsider on these FTAs and further increase in <g data-gr-id="37">anti dumping</g> duties very soon to safeguard the suffering rubber and steel industry domestically,” a CII statement quoted Tomar as saying.
Indian steel industry has been hit hard due to cheap imports of the metal from China as well as from South Korea, which has a FTA with India that the industry says is leading to the country exporting cheaper products to India.
While addressing at an event organised by CII, Tomar assured the rubber industry that the government is seized of the matter and is concerned about the situation. “We are concerned about the situation your industry is facing related to power and dumping by China. We are working on it to sort this out. The government is looking at the issue of FTAs and their impact on the industry,” he added.
India, <g data-gr-id="45">world’s</g> third largest steel producer, saw a surge in import stainless steel surge by 49 <g data-gr-id="35">per cent</g> to 5.5 lakh tonnes (LT) in 2014-15 against 3.7 LT in 2013-14. In value terms, imports of the metal rose by 23 per cent to Rs 5,918.9 crore in 2014-15, as against Rs 4,801.9 crore in 2013-14.
Earlier this month, Revenue Secretary Shaktikanta Das had said that a decision regarding <g data-gr-id="48">imposition</g> of safeguard duty on import of steel will not be delayed if the Directorate General of Safeguards recommends restrictive duty. According experts, free trade agreements with Japan and South Korea have already resulted in cheaper imports of steel and has impacted the domestic production. Under FTA, duties on most of the products traded between the countries are either eliminated or reduced sharply. Industry has already demanded that steel products should be excluded from the ambit of FTA with Japan and Korea as these countries are flooding the Indian market, taking advantage of concessional duty rates at the cost of domestic firms.
In a <g data-gr-id="44">much needed</g> relief for domestic producers, in June the government increased the basic customs duty (BCD) on certain long and flat steel products by 2.5 <g data-gr-id="33">per cent</g>. Import duty on flat steel products <g data-gr-id="42">have</g> been increased to 10 per cent from 7.5 per cent, whereas that on long steel products have been raised to 7.5 per cent from 5 per cent. In the same month, India had slapped an anti-dumping duty of up to$316 per tonne on imports of certain steel products from three countries, including China, to protect domestic producers from below-cost inbound shipments.
A duty of$309 per tonne has been imposed on imports from China, while$316 per tonne duty has been fixed for Malaysia and$180 per tonne for Korea.
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