India’s top industry representative body, the Federation of Indian Chambers of Commerce and Industry (FICCI), has sought three months for the Indian domestic steel industry to clear export orders, the organization said in a communication to the government on Monday, May 23.
“I suggest at least three months should be given to taper off orders and to supply the orders taken,” V R Sharma of the FICCI steel committee said.
“We appreciate the efforts of the government...However, sudden export duty imposition will force steel mills to stop export bookings, but what will happen to the orders taken or still in the pipeline? A three-month period will provide relief to the customers, who are not at fault,” the FICCI said in a statement.
The Indian government has imposed an export tax of 15 percent on steel products, which is expected to risk an estimated 2 million mt of export orders already in the pipeline, where either sales contracts have been signed or letters of credit established.