The meeting of India's Cabinet Committee on Pricing (CCP), which had been expected to take place yesterday to decide the future of the country's steel exports, has been postponed because of initial differences within the government.
On the one hand, India's Steel Ministry has proposed a complete ban on exports of HRC, HR sheets and plates, the introduction of a 10 percent export duty on CR steel products and a five percent export duty on coated and galvanized steel products. In addition, the ministry has proposed the removal of the five percent import duty on steel and also the termination of the existing 14 percent countervailing duty. If accepted by the CCP, this proposal may bring the domestic prices of imported steel down by approximately 19 percent, Steel Minister Mr. Ram Vilas Raswan argued.
On the other hand, the parties of the Left have recommended a ban on all steel exports for a period of one year, a closer monitoring of the domestic steel sector and a complete ban on exports of high grade iron ore.
Meanwhile, the domestic steel producers in India are urging the government not to ban steel exports, arguing that the measure will not bring domestic steel prices down since the main reason for their increase is the rising cost of production.