Mundra Port in Gujarat is likely to be decided as a destination for all steel import in a move to make import costlier.
Indian government has finally geared up to protect domestic steel industry, which reeling under pressure amid cheap import. If trade sources are to be believed, apart from introducing Minimum Import Price (MIP), the government may restrict inward shipments of steel to only one port, Mundra.
The idea behind the same is to make import costlier. Geographically, Mundra Port in Gujarat is furthest from its Asian competitors like China, Japan and Korea from where maximum import arrives in India. With this, the government will also be able to keep an eye upon imported products’ quality and price.
The Steel Ministry has written a proposal to Finance Ministry for the same. However, no official communication has been yet made from the Finance Ministry.
Also as per media reports, MIP is likely to be introduced soon by the government. MIP is a price beyond which goods cannot be imported into India.
However, the Commerce Ministry is raising objections against MIP as it may lead to illegal trade activities. Moreover, the government may fail to check over-invoicing by importers and consequent illegal flow of money.
Another move expected by Indian government to curb cheap imports is imposition of safeguard duty on HR plates and sheets as investigation on the same is initiated by DG Safeguards on 7 Dec’15.
India’s total steel import had surged drastically by 41% from 5.10 MnT in Apr-Oct’14 to 7.20 MnT in Apr-Oct’15. The nation had imported 7.93 MT in FY13, 5.45 MT in FY14 and 9.31 MnT in FY15. As per Steel Secretary, steel import is likely to reach 15 MnT in current fiscal, FY16.
Leave a Reply