The plight of stainless steel industry has been ignored in the Budget; despite an increase in import of stainless steel products, the basic customs Duty on finished products has been not hiked, industry body ISSDA today said.
“Due to excessive surge in imports of stainless steel products, the industry has been struggling and was expecting an increase in basic customs duty on finished goods from 7.5 per cent to 12.5 per cent (at par with carbon steel),” Indian Stainless Steel Development Association (ISSDA) said in a statement.
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ISSDA urged the Finance Ministry to relook at the Budget decision and abolish the duty on key raw materials and increase duty on stainless steel finished goods adding that these steps would help revive the ailing industry.
While it is a welcome move that basic customs duty on Nickel has been abolished but major demand of nickel required by the stainless steel industry is met from Ferro Nickel and stainless steel scrap. Both Ferro Nickel and stainless scrap, key raw materials for stainless steel manufacturing, attract an import duty of 2.5 per cent, the industry body added.