FICO strongly opposes major increase in steel prices

Ludhiana, December 2, 2017: In a meeting under the chairmanship of S.Gurmeet Singh Kular, President, FICO, held at Jaimal Road, Janta Nagar Ludhiana, Federation of Industrial & Commercial Organization (FICO) strongly expressed resentment over the major increase in steel prices. In last 6 months Steel Ingot prices have been rose to Rs.31500 from Rs.24000 per tonne, which is a major setback for the MSME Sector. On 1st December 2017, the Ingot Prices has been increased by Rs.4000 per tonne. The prices of CR Strip has been increased to Rs.53000 from Rs.44000 per tonne, thus, Rs.11000 per tonne increase will destroy the Micro, Small & Medium Industry of India.

After implementation of GST, unlike expected the steel prices have rose. The SSI will have face a closer due to being incompetent. Exporters will lose their orders which in turn will affect the economy as foreign exchange will not come. Small Scale Industry with limited capital will face cash crunch which is fatal for the industry.
FICO strongly opposed this increase and ask the government to intervene for saving the finished goods manufacturing industry. Minimize the import duty & anti-dumping duty should be abolished with immediate effect. So that the industry can get raw material at international prices enabling them to be competent in global market.
Iron ore is cheap in India then international market, but steel ingot is expensive in India then other countries like Taiwan, Korea, China etc. FICO requested the government to review the steel prices quarterly in comparison to the international market.

Freight subsidy should be introduced as Punjab is a Land Locked State and away from port, demanded FICO.
International Price Reimbursement Scheme (IPRS) should be started to save the Small Scale Industry, FICO leaders further said.
Amongst Present were S.Gurmeet Singh Kular (President), Sh.Rajeev Jain (Secretary), S.Harpal Singh Bhamber, S.Gurwinder Singh Sachdeva (Head Trade Division) and S.Sohan Singh Goga.