MSMEs disappointed as DGS recommends extending safeguard duties on steel until Mar 2018

New Delhi, Mar 17 (KNN) A day after the Directorate General of Safeguards (DGS) in the Central Board of Excise and Customs has recommended extending the duties on some steel products up to March 2018, the MSMEs have expressed disappointment over it.

Responding to this, V K Agarwal, MD, Shashi Cables, said, “Government is only bothered about big players. They don’t care about the small manufacturers.”

They have a “let them die” attitude, the UP based entrepreneur said adding that how can Indian MSMEs be competitive in such market.

“Steel is no longer a strategic item and it does not need any protection,” he said.

The finance ministry arm has recommended extending the duty on hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more until March 2018.

Its notification on Wednesday said increased imports of the product had caused serious injury to domestic producers and the recommendation was in the public interest.

The duty was first imposed in September 2015, a 30 per cent provisional one. Now, suggests DGS, it should be 20 per cent ad valorem (minus anti-dumping duty, if any) till September. In the following year, 18 per cent ad valorem till March 2017, then 15 per cent till September 2017 and in the final six months, 10 per cent.

Further, in a written reply in Rajya Sabha on Wednesday, Minister of State for Steel, Vishnu Deo Sai said, “Due to the excess capacity in many of the leading steel producing countries like China, Japan, Russia, Korea etc. these countries export steel products into growing markets like India, even at below cost of production, resulting in the prices of imported items being much lower than their domestic prices.” (KNN Bureau)