Indian government ministries and steel producers agree to supply steel for export production at lower prices

Friday, 21 June 2019 11:43:33 (GMT+3)   |   Kolkata
       

India’s ministries of steel and commerce have arrived at a consensus together with domestic steel producers to provide steel for export production at prices lower than prevailing domestic prices, a senior government official said on Friday, June 21.

The official said that several rounds of joint consultations have already been completed during which it has been agreed that the government will increase tariff and non-tariff protection from imports for domestic steel producers, but in return steel producers will have to ensure supplies of steel at lower prices to manufacturers of steel products for export.

All stakeholders have agreed upon the proposal that domestic steel mills will supply finished steel at FOB prices to engineering product exporters for the latter to remain cost competitive in the global market, the official added.

Elaborating, he said that, if the monthly average FOB export price of the steel product of Company A was X, then the same exporting steel company will need to provide domestic supplies to exporting manufacturing units at X.

The official said that the government, while assuring steel companies of additional tariff and non-tariff barriers, has also decided to announce a fresh quality control order which will encompass all steel product categories currently outside the ambit of quality control, and this will offer non-tariff protection from imports.

 


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