The Federaton of Coimbatore Industrial Associations (FOCIA) on Friday appealed to Union Finance Minister Nirmala Sitharaman to not withdraw export duty on steel products until global recession is overcome and also form a raw material price fixation committee.
In a letter to the Minister, a copy of which was made available to the press, FOCIA thanked her for taking bold measures like levying export duty on finished steel products and iron ore in May last.
Even though the 30 per cent reduction of steel prices in India reflected the global trend of falling steel prices, the steps taken by the Finance Minister exhibited the Centre’s willingness to safeguard the interests of MSMEs in the country, it said.
Though the raw material prices have come down to an extent, the orders have diminished at present and the MSMEs were affected by the recessionary trend, said the FOCIA.
The MSMEs are yet to recover from the damages inflicted by COVID-19 and losses incurred by earlier raw material price escalations, it said in the letter.