The Engineering Export Promotion Council (EEPC) on Thursday expressed concern over the ban on steel shipments at Indian ports and asked the government to implement other measures to support micro, small and medium enterprises as well as issue no objection certificates (NOCs) for shipments of steel. Steel Sector Enterprises (MSMEs).
“Many of our members are facing significant challenges due to delay in receiving NOC from the Ministry of Steel. Absence of NOCs is severely affecting their ability to clear goods from customs, thereby hampering their business operations,” EEPC India President Pankaj Chadha said in a statement.
EEPC members have pointed out that quality control committee meetings are not being held as frequently as required, resulting in delays in issuance of NOCs for steel consignments and these delays are causing major disruption to business operations, EEPC said. Industry can intervene to solve this problem.
Last month, The Indian Express reported that the Japanese Embassy in India had raised concerns with the Ministry of Steel and the Ministry of Commerce and Industry, highlighting that customs authorities had detained shipments of Japanese steel at Indian ports. NOCs.
Engineering exporters have also expressed significant concerns about the proposed safeguard tax on steel imports, warning that such a measure could raise the price of steel in the domestic market and make engineering exports uncompetitive in the global market.
“Steel accounts for about 60 percent of the manufacturing cost of many engineering products. Consequently, any fluctuation in the price or availability of steel has the effect of hampering engineering exports and weakening their ability to compete internationally,” the EEPC said.
Exporters have suggested that, if necessary, targeted support measures should be provided to domestic steel producers instead of imposing safeguard duties, which could have far-reaching negative consequences.
The Global Trade Research Initiative (GTRI) noted that India’s steel industry focuses on low-margin products while relying on imports for specific applications. The report highlights the need for a balanced approach that addresses the needs of both large producers and small steel-using industries.
“Current policies heavily favor large firms, stifle SMEs and threaten employment and growth. The government must adopt balanced reforms to ensure fair competition, streamline import processes and encourage high-quality steel production. Only then can India’s steel sector become a reliable pillar of its economic growth.” can meet both domestic and global demands,” GTRI said.
GTRI said antidumping duties also show selective enforcement. For example, more than 80 percent of stainless steel pipes and tubes enter India duty-free from ASEAN countries, but three major suppliers, Indonesia, Vietnam and Thailand, have been excluded from recent antidumping measures. “These selective decisions by BIS or DGTR benefit some large firms while harming small businesses,” GTRI said.