CICU TO UNION GOVERNMENT: Not to Extend Minimum Import Price on Steel

Ludhiana, July 27, 2016: Sh.Avtar Singh, President, Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana in a statement released today said that Central Government imposed Minimum Import Price (MIP) on 173 steel products on 4th February 2016 ranging between US$ 341 to US$ 752 per ton valid up to 6 months to deter cheap imports from China, Russia, Japan and South Korea. As per CNN latest news MIP on steel products is likely to be extended for another 6 months. MIP on Steel Products had actually protected hefty margins of Indian Steel Makers such as JSW Steel, Tata Steel Ltd, Jindal Steel & Power Ltd, Essar Steel India and Kalyani Steel. Due to this measure cost of raw materials for engineering products had already increased by about 10 percent and engineering exports has declined by 15 percent.

Sh. Upkar Singh Ahuja, General Secretary said that since July 2016, prices of steel have started decreasing in lieu of expiry of MIP w.e.f. 4th August 2016. With further extension of MIP for another 6 months, segments like Auto & Auto Parts, Cycle & Cycle Parts, Industrial & Electrical Machinery and other products of MSME Sector, which are operating on low margins and are facing cut throat competition will be facing escalation in raw material price, thereby giving a further jolt to the manufacturers and exporters. This unprecedented move will cause significant impact on the entire manufacturing sector. Any further extension will be a causing concern and biggest shock for MSME industry

They have strongly appealed and urged upon Sh. Narendra Modi, Hon’ble Prime Minister and Sh. Narender Singh Tomar, Hon’ble Steel & Mines Minister, Govt. of India not to further extend period of MIP on Steel Products for survival of Micro, Small & Medium engineering industry, which is already reeling under adverse economic scenario.