Steel price hike gives shivers to industry

Tribune News Service

Ludhiana, December 2

With the increase in steel price during the last six months the local industry is facing a tough time. Steel ingot prices have gone up to Rs 31,500 from Rs 24,000 per tonne, which is proving a major setback for the micro small and medium enterprises (MSME) sector.

On December 1, the ingot prices rose to Rs 4,000 per tonne. The price of CR strip has increased to Rs 53,000 from Rs 44,000, which is a sharp increase of Rs 11,000 per tonne.

“The small scale industry (SSI) will face closer as it will become incompetent. Exporters will lose their orders, which in turn will affect the economy as foreign exchange will not come. The SSI with limited capital will face cash crunch, which is also fatal for the industry,” said FICO president Gurmeet Kular.

Meanwhile, FICO has strongly opposed the increase and asked the government to intervene for saving finished goods manufacturing industry.

“Minimise the import duty and abolish the anti-dumping duty with immediate effect so that the industry can get raw material at international prices enabling them to be competent in global market,” said Manjinder Singh Sachdeva, general secretary, FICO.

“Iron ore is cheaper in India than in the international market, but steel ingot is expensive in the country than other nations including Taiwan, Korea, China and others. FICO has requested the government to review steel prices quarterly in comparison to the international market,” he said.

“Freight subsidy should be introduced as Punjab is a land locked state and away from port. International Price Reimbursement Scheme (IPRS) should be implemented to save the small scale industry,” he suggested.