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Domestic stainless steel industry eyes higher customs duty

After imposing CVD on Friday, the industry hopes for upward revision of basic customs duty, from 7.5% to 12.5%

Aditi Divekar 

Representative image
Representative image

seeks stronger support from the government as it hopes for an upward revision of basic for stainless steel, bringing it at par with duty on primary steel products, which currently attracts a 12.5 percent levy.

On Friday, the government imposed 18.9 per cent on Chinese hot and cold rolled products, effective for a period of five years.

"We are hoping that the government, would further support this in a similar manner as it has done for the carbon steel producers (primary steel makers) where they were protected with series of duties while we (stainless industry) were left high-and-dry," N C Mathur, independent director at Jindal Stainless (Hisar) told Business Standard.

Currently, imports draw a basic of 7.5 percent.

Meanwhile, officials counted longterm benefits of imposition for the  

"Imposition of CVD, will help the increase its capacity utilisations since cheap ate into 20 percent of the total demand," said a producer on condition of anonymity. 

"producers, just like primary steel producers also have exposure to banks, and this duty will only place us in a better position to service our debt," he added.

Domestic is a three-million-tonne as against China, which produces 24 million tonne annually. China's production forms almost half of the world's output of 45 million tonne.

In the domestic market, Jindal Stainless Group, state-owned Steel Authority of India (SAIL) and Mukand Ltd among others are some of the big producers of with an annual crude of 1.8 million tonne, is the country's largest producer.

Since the last couple of years, domestic primary steel producers have received prompt protective measures from safeguard duty to minimum to the recent in a bid to counter cheap imports flowing into the country. The domestic industry, on the other hand, has not been lucky enough to recieve such measures. However, with the imposition of CVD, it seems like the government has now placed its focus on other varities of the

finds wide application in the making of utensils and is also used in consumer goods items.

First Published: Wed, September 13 2017. 02:03 IST