Paswan seeks ban on steel exports; CCP to decide next week

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New Delhi, Apr 12 As yet another tough measure to curb price rise, the steel ministry has recommended banning export of finished steel and hiking duty on iron ore export—the issues which will top the agenda of meeting of the Cabinet Committee on Prices (CCP) next week.

“We have recommended a ban on exports of finished steel products completely. This recommendation has gone from my ministry to the government,” steel minister Ram Vilas Paswan said here on Saturday.

Other recommendations of the ministry sent to the CCP include cut in excise duty on the alloy from 14 to 8%, abolishing import duty as well as the Countervailing Duty on steel products besides imposing 15% duty on export of iron ore, he said.

The finance ministry has also sent a detailed note to the CCP listing options for containing inflation, which has touched a three-year high and has become a major political challenge for the government.

The CCP to be chaired by the Prime Minister Manmohan Singh is likely to meet on Tuesday or early, depending on the return of finance minister P Chidambaram from abroad.

Paswan pointed out that at a time when global steel prices are high, the domestic manufacturers tend to focus on exports to cash in on the opportunity at the cost of domestic consumers.

He also warned that even after these measures, if steel producers do not rein in exports and reduce prices, then the government will resort to bringing steel under the Essential Commodities Act.