New Delhi: Engineering Exporters has warned against the implementation of Protective duty on steelarguing that it would raise prices in the domestic market and make exports uncompetitive.
Steelmakers have been lobbying hard for import protection, arguing that cheaper imports from ASEAN countries, which have a free trade agreement, are hurting domestic players. Arguing against the proposal, EEPC India Chairman Pankaj Chadha said the duty, which can be levied in emergency situations, is unjustified as it will increase prices by 20-25 per cent as house prices are always linked to the value of land.
He said that due to freight and port handling charges, prices on imports from ASEAN countries are falling by 12.5 percent, which goes up to 20 percent in the case of Chinese steel as they also face import duties. He said the bulk of the imports come from Japan, which is seen as a high-cost producer.
“Our players (steel companies) say they are the cheapest. They also have a strong balance sheet. The proposal has been made without consulting the consumer industry, which will be difficult,” Chadha added. If action is to be taken, it must be on specific products. He said government programs would be the most affected as it is the biggest buyer of steel for its ambitious infrastructure programme.