India may suspend export incentives on steel

India may suspend export incentives on steel

In an effort to prevent price hikes in the domestic market, the Indian government is planning to take certain measures to hinder steel exports. A 27.65% year-on-year spike in steel exports during the April – May 2005 period has prompted the Indian government to consider suspending export incentives in an effort to maintain a steady supply of product in the domestic market. Among the incentives that might be canned are the Duty Entitlement Pass Book (DEPB) incentives on steel products. As reported by SteelOrbis, the Indian government, in March 2004, lifted DEPB incentives on steel exports for a six-month period in an effort to reduce exports. In August 2004, the DEPB incentives were restored. High international prices during the early part of the 2005 are one of the main reasons for the recent surge in exports of steel from India.