Imposing MIP is an “anti-reformist” move: FOKIA

Kutch, August 1 (KNN) The Federation of Kutch Industries Association (FOKIA) has said that in the era of globalisation, imposition of Minimum Import Price (MIP) on steel is an "anti-reformist” move and it won’t give long term benefit to the industry as well to the Government.

“Core issues need to be addressed,” it said

Talking to KNN, Nimish Phadke, Managing Director of FOKIA said, “We met Union Steel Minister on 28 July.  The meeting was called to discuss whether MIP should be continued or not. He had taken the suggestions on that and assured to take a call based on that.”

To aid domestic companies, the government imposed MIP in February 2016 on 173 steel products for a period of six months (ending in August) to help cut inbound shipments.

He said FOKIA had asked the government earlier too for not imposing MIP on 173 products and had suggested to go product wise. There are various pros and cons on each product, but nobody listens to us at that point of time.

He said that as far as submerged arc-welding pipe (SAW) is concerned Kutch is the manufacturing hub for SAW pipe. MIP was imposed on raw material of SAW pipe. The raw material which industry was getting at 270 US Dollar then after imposition of MIP it has gone upto 360 US dollar.

FOKIA MD informed that processing industries have also faced the negative impact of the imposition of duty on items like nail, mining wire etc while the finished goods have no duties levied.

There was huge dumping from China in Indian market which led to no scope for Indian manufacturers.

“However, some products also got benefitted after the imposition of MIP. In TMT bars, Indian manufacturers are doing well. We asked them to review the imposition of MIP in each product,” he stated.

"There are instances where, in international bidding, our industries are losing contracts due to cost factor. The domestic steel process industries and micro, small and medium enterprises, scattered all over the country, will have to shut their shops if the MIP on raw materials continues for a further period (beyond August)," he said. (KNN Bureau)