Imposition of additional duty on steel imports to hit exports by MSMEs: Exporters

PTI New Delhi: MSME exporters from the engineering sector on Tuesday said that any move to impose additional duties on steel imports would make domestic products uncompetitive and impact the country's outbound shipments from the sector. Hand Tool Association Chairman S C Ralhan said that the MSME engineering exporters are already facing problems on the liquidity front and high prices of steel in the domestic market. "Increasing prices of steel by domestic steel makers are hurting us and now we have seen in the media reports that the government is planning to impose a 25 per cent safeguard duty. This will severely impact MSME exporters," Ralhan said.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that if the government imposes additional duty, they should ensure that the domestic steel companies do not increase the prices of the inputs. "Increase in input prices will impact exports of value- added steel products," Sahai said.

The steel ministry has proposed for a 25 per cent safeguard duty on import of certain steel items into the country. The proposal came at a meeting between Union Minister of Steel H D Kumaraswamy and Commerce and Industry Minister Piyush Goyal here on December 2.