Economy

Engineering exporters seek curbs on primary steel exports to check domestic price rise

Our Bureau New Delhi | Updated on May 12, 2021

EEPC worried about MSME exporters going out of business if steel prices not contained

To check rising domestic steel prices, a key ingredient in the production of engineering goods, exporters from the sector have asked the government to consider imposition of quantitative restrictions on export of primary steel and also raise export duties on the item.

Representatives from EEPC India, in a meeting with Commerce & Industry Minister Piyush Goyal and the Directorate General of Foreign Trade on Tuesday, pointed out that value-added steel products exported from India were becoming uncompetitive in the international market due to rising prices of primary steel locally and urged the government to consider both tariff and non-tariff measures to rein in steel prices, per a statement issued by EEPC India.

Accordingly, quantitative restrictions could be imposed on export of primary steel which is used as key raw material by local manufacturers. Export duty could also be raised to make steel available in the domestic market at reasonable and competitive prices, the body suggested.

"There has been a substantial jump in export of primary steel in recent months while many value-added steel products shipped from the country have seen a 15-35 per cent decline," said EEPC India Chairman Mahesh Desai. He said that if the government does not take steps to contain steel prices, many MSME exporters will be out of business and it will lead to unemployment of skilled people.

The EEPC also proposed to the Minister that export activities should be declared as essential services and should be exempted from pandemic restrictions.

Published on May 12, 2021

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