Bowing to intense lobbying by large steel companies, the Government has extended the applicability of minimum import price on 66 steel items by two months.
The notification issued by the Ministry of Commerce said the Central Government hereby extends the applicability of minimum import price on 66 HS Codes as specified in the previous notification for further two months till December 4.
Welcoming the decision, Sanak Mishra, Secretary General – Indian Steel Association, said though the association had requested for six months’ extension, the continuation of MIP for two months will aid in further strengthening of India’s domestic steel market and reducing the distress of companies through introduction of fair play in competition.
The intervention of the Government is both timely and critical to address the distortions that were being created on account of surge in low-priced imports for the past several years he said.
Trade remedial measures, especially MIP, have resulted in decline in import of total finished steel by around 35 per cent during April-August at 3 million tonnes compared to the same period last year. Nonetheless, India has remained a net importer of steel during this period, and steps like continuation of MIP may reverse the trend in the coming months, Mishra said.