The Federation of Indian Chambers of Commerce and Industry (FICCI), an apex industry representative body, has sought the scrapping of the import duty on ferronickel and a hike in the import duty on finished stainless steel products in the national budget for 2022-23 scheduled to be placed before India’s parliament on February 1, according to a memorandum submitted by the federation to the finance ministry on Tuesday, January 18.
In the memorandum, FICCI has sought the scrapping of the existing 2.5 percent basic customs duty on ferronickel and a hike in the customs duty on finished stainless steel products from 7.5 percent to 12.5 percent.
FICCI said ferronickel is the most important raw material used in stainless steel-making and the industry meets the bulk of its nickel requirements through the ferronickel and stainless steel scrap routes, as pure nickel is very expensive.
As ferronickel is not available in the country due to the deficiency of nickel ore, stainless steel producers have to import it from countries like Japan, South Korea and Greece.
It may be noted that the customs duty is not applicable on ferronickel originating from Indonesia and Japan due to the India-ASEAN FTA and the India-Japan Comprehensive Economic Partnership Agreement (CEPA).