"The gap between the producer and trader needs to be bridged. The challenge is not so much to produce but to improve consumption. The traders can go a long way in boosting consumption," Mr Prasannan said. The growth in steel consumption has increased by 11 per cent this year over the previous year. Finished steel production improved from 13 per cent to 19 per cent.

The union minister of steel, Mr BK Tripathy, who inaugurated the function, emphasised: "Steel producers need to expand their sales basket. The traders should establish long term relationships with the producers."

The ministry of steel is formulating a national steel policy which will endeavour to identify efforts that are to be made to take the industry at a global level. The move is aimed at increasing the consumption of steel in India. Essar Steel managing director Jatin Mehra said: "Consolidation is taking place in the upstream and downstream segments. In the upstream, a major part of the iron ore and coal in the world is being closely controlled by four companies. At the downstream level too, the consumption is controlled by major players in the automobile sector. The steel industry is sandwiched between the two." The challenge for the manufacturer is not to benchmark himself with the best in the country, but with the best in the world, said Mr Mehra. He added, that since the customer is better informed - "he knows what the prices are be it of an Indian manufacturer or American manufacturer" - Indian prices need to competitive with the global price scenario.

Concurring with Mr Prasannan's views, Mr Mehra said that no manufacturer can survive without a proper distribution channel and hence the trader is required to offer value added services.

"Steel will have to penetrate into the rural market to find new applications, and it is the trader who needs to take the initiative in enabling this," he said, adding that it is not the production of steel in the rural areas which is a problem, but its availability. In his opening remarks, The Steel Chamber of India chairman Sampat B Maru said: "Political compulsions have hindered implementation of the government's policies on steel and as a result of this there is a slowdown particularly in the infrastructure sector."

Mr Maru expressed concern over the covert protectionism in the overseas markets which denies access to Indian exporters. In the recent past, progress in export markets has received a serious jolt by a number of anti-dumping cases being brought against Indian manufacturers and traders by the developed market economies, he added.