President of Apex Chamber of Commerce & Industry Punjab, PD Sharma writes to Steel Minister, regarding Minimum Import Price

Ludhiana, July 12, 2016: PD Sharma, President of Apex Chamber of Commerce & Industry (Pb.) has written a letter to Steel Minister, Government of India regarding Minimum Import Price.
The letter reads as under: “Steel Ministry seemingly under the pressure of big steel producers enforced Minimum Import Price (MIP) regime. Now this provision will lap after about a month. There is again a pressure from the steel industry to extend it.
MIP, on the face of it, is soft face of the Government towards big steel producers at the cost of steel user, majority of which are in the small and medium scale sector. This decision was quite illogical. The record of our big steel producers is very unhealthy on moral grounds to say the least. They have been fixing prices quite arbitrarily without caring to the steel users point of view. As a matter of fact steel prices or for that matter price of any commodity should be fixed on commercial basis.
The methodology adopted by our big steel producers has been viewed as illegal in many countries. In fact those adopting this methodology were heavily penalized in South Africa and Europe.
It is a fact that perception is firming up that governments, this or the past, are all out for the big corporates. It is, therefore, imperative that government should see the steel user’s point of view.
It is also worth keeping in mind that we are facing acute problem of Job Creation. Jobs are only possible through MSME Sector. From this angle also government should not overlook the interest of MSME sector.
In view of the above facts it is urged that MIP regime should not be further extended.”