Kolkata, May 23 (PTI) In the wake of rising input costs, especially primary steel, the government’s decision to remove import duty on raw materials for the metal production would lower costs for domestic steelmakers and reduce prices by around 10 per cent, an Engineering Export Promotion Council official said on Monday.
The move would help engineering goods manufacturers and exporters become more competitive in the global markets, EEPC India chairman Mahesh Desai said.
He also said, “imposition of export duty on iron ores and a host of steel intermediaries would increase the domestic availability of the key industry inputs”.
The government levied an export duty of 15 per cent on almost all the major steel products, including stainless steel.
In order to reduce the overall cost of domestic production of steel products, the Centre slashed import duty on coking coal and anthracite from 2.5 per cent to zero.
Meanwhile, import duties for coke or semi-coke and ferronickel were lowered too, from 5 per cent to zero and 2.5 per cent to zero, respectively.
“Downstream exporters feel primary steel products prices will fall by 10 per cent for primary producers and 15 per cent for secondary steel producers,” Desai said in his reaction.
He said that a reduction in fuel prices would ease logistics costs which have been hurting the sector.
“All the steps together would not only help the industry beat the surging input costs but also improve liquidity. We welcome the government decision and greatly appreciate the timely response,” he said.
Rising inflation has emerged as a major headache for policymakers across the world, he said, adding that the persistently elevated price poses a serious “risk to demand and growth”.
“The latest decision of the government should partly neutralise the negative impact of surging raw material prices,” he added. PTI BSM BDC BDC
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