The Indian government needs to offer a provision for steel consumers in micro, small and medium enterprises (MSME) segments to procure steel at ‘export parity price’ to ensure their products are globally competitive, the Engineering Export Promotion Council (EEPC) said in a statement on Wednesday, March 19, regarding the recommendation of a 12 percent safeguard on steel imports.
The EEPC said that, since most domestic steel producers export steel products from the country at lower than the average local sales prices, the option to source steel at export prices should be offered to steel industries geared to exports.
The government should also look at introducing a Tariff Rate Quota (TRQ) system allowing low-duty imports within specified limits, with the safeguard duty applicable beyond the quota. Like the EU model, country-specific quotas should also be considered to avoid overdependence on any single source,” EEPC chairman Pankaj Chadha said in the statement.
Highlighting concerns over a domestic price escalation, he said that using the TRQ price as a benchmark to maintain price stability and prevent steep hikes was needed to ensure affordable raw material supply for the engineering and manufacturing sectors.
EEPC India looks forward to continued engagement with the government to safeguard the interests of both domestic producers and downstream industries, he added.