Indian steel producers not happy with duty cut

Indian steel producers not happy with duty cut

As reported by SteelOrbis back on Friday, Indian government reduced customs duty on non-alloy steel from 10% to 5% to be in effect as of August 20, 2004 under the scope of measures taken to rein inflation. However, the action did not make the producers happy. The Indian Steel Alliance (ISA) representing five major steel producers in the country stated that the duty cut will not have an immediate effect on the market, claiming that the cut in the duty will not be sufficient to protect steel industry in the long run if prices in international markets decrease. Moreover, in order to secure a long-term solution, the ISA believes that rather than customs duty, the excise duty should be cut. On the other hand, SAIL stated that the duty cut will provide steel availability in domestic market. Essar Steel commented that the action will prevent export of excess steel, so export of steel products and companies' expansion plans will diminish.