The Indian steel industry has sought reductions in import duties on key steelmaking inputs in the forthcoming national budget to be placed before India’s parliament on February 1, according to a representation submitted by an industry body to the Ministry of Finance.
In a representation submitted to the ministry, the Federation of Indian Chambers of Commerce and Industry (FICCI) has sought the scrapping of the five percent import duty on metallurgical coke as Indian steel producers are highly dependent on imports of this critical input, while the rise in the international price of coke has pushed up domestic steelmaking costs.
Similarly, domestic steel producers are also heavily dependent on imports of coking coal in view of the severe shortage of domestic supplies and the FICCI has sought that the 2.5 percent import duty should be reduced to zero in the forthcoming national budget.
Other changes in import duty rates related to the steel industry suggested by the FIICI include the reduction in basic customs duty on graphite electrodes from 7.5 percent to zero and the imposition of a 30 percent export tax on graphite electrodes.
The federation has also sought an increase in import duty on stainless steel flat products from 7.5 percent to 12.5 percent in the budget.