Ghaziabad, Jan 31: The domestic tin container manufacturers have asked the government to review its protection to large steel mills which is not only violative of GATT free trade regulations but also forces the small scale sector to import tinplate at artificially high prices.They say the international prices for steel products-tin prime are $545 a and waste/waste at $375 a tonne while the floor price fixed by the government rules at $720 a tonne adversely affecting the domestic tin container industry.
``Never mind If international prices of these items are lower than the domestic prices but we shall not allow you to import it freely unless it is prices at $720 approach has pushed several industries towards closure, the vice president of the the Metal Container Manufacturers Association of India, Sanjay Bhatia told a press conference on Sunday.
``If we can it only at $720 , that means we have to get false invoices and have to pocket the balance $ 75 illegally, in other words government actually wantsus to do hawala dealings, Bhatia said.
Last month, the government through a notification had announced a package banning free import of tin plate prime and waste/ waste if they were priced at below the certain floor price.
The floor price was itself fixed following consultations with steel minister and secretaries in commerce and steel ministries. Earlier, the association had given figures from the `Metal Bulletin' to show that the prices fixed were far above the prevailing international prices.
Moreover, the domestic producers of the tinplate viz Tinpalte Company of India and the Steel Authority of India together have been producing approximately 90,000 tonnes per annum against the industry's demand of 3,00,000 tons leaving a shortfall of nearly 2,00,000 tons between demand and supply, Bhatia said.
The industry which is primarily concentrated in small scale sector is passing through a crisis due to recessionary trend and loss of business to other substitute packaging materials supplying packingessential food products like coffee, tea, dairy products, mango pulp, vanaspati, vegetable, fruit and non-edible products.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.