Ludhiana, Sep 10 (KNN) Micro, Small and Medium Enterprises (MSMEs) involved in engineering industry has demanded to put a curb on the steel export, so that MSME can get adequate supply and can produce more adding value to the society.

In this regard, the Chamber of Industrial & Commercial Undertakings has sent a letter to Prime Minister Office (PMO) and Minister of Steel Dharmendra Pradhan.

Upkar Singh Ahuja, president, and Pankaj Sharma, general secretary, CICU, on Wednesday said 2020 had been the worst year for Indian Micro, Small and Medium Enterprises (MSMEs).

Citing rise in steel prices due to demand, low output and export from April to June, the industrial body asserted that the engineering industry is worse affected.

''The main reason for the rise in steel prices was rise in demands, low output during April to June and export of steel. As per available data for export for July. Total export was 2.4 million in July, whereas in January it was .98 million. 40% of steel was exported to China. Steel makers increase price by 5050 PMT, open market increases 9000 PMT,'' CICU said.

CICU further said that the industry is facing many challenges like labour shortage, liquidity crunch, travelling, low sales, health issues of employees and many more.

However, they remained optimistic and said, ''there is a ray of hope for Indian MSME as per reliable sources Indian Steel makers have deferred the export orders for two month and will push maximum supplies in Indian market.''

''Demand and supply fix the price, if supply is more the rate of steel will slash,'' it added.

Sarvjit Singh, Co-Convener of CICU Export Promotion Committee said that the second factor is cap on Merchandise Exports from India Scheme (MEIS).

''Ministry of Commerce and Industry vide notification No. 30/2015-2020 dated 1.09.2020 put a cap on MEIS benefits on exports for large exporters maximum benefits can be 2 crore. It will directly affect the steel products of large exports and maximum meter will be supplied in domestic market.''

Rajat Gupta, Press Secretary, CICU said that the ceiling of Rs 2 crores, will be subject to downward revision, to ensure that total MEIS reward for 01.09.2020 to 31.12.2020, (for all products together) does not exceed Rs 5000 crores which is announced allocation by the government.