Feb 22, 2021
Implement a complete ban on steel exports, says Federation of Indian Minerals Industry

2021-02-25
The Federation of Indian Minerals Industry (FIMI) has urged the Centre to implement a complete ban on steel exports so that there is no shortage of steel in the country resulting in price rise and reduce the import duty on steel to bare minimum so that the integrated steel players are exposed to global markets.
Talking to ET, R K. Sharma, secretary general, FIMI said "The issue of unjustifiable continual increase in steel prices by primary steel companies is not at all linked to the effect of pandemic. In fact, due to Covid-19 pandemic the prices of steel should have been reduced by the steel companies. Considering the mining and metals sector as essential services, the government has permitted continuation of mining operations even during country wide lockdown. As such almost all the steel companies have their own captive iron ore mines which ensure them to get raw material at much cheaper prices on a sustained basis.
Due to artificial and whopping increase in prices of steel, it is not only the MSMEs who got adversely affected but also other vital sectors like infrastructure and construction projects and common end consumers at large have been severely hit. Further unsustainable prices are impeding the use of steel in the country as a result of domestic per capita consumption remains at abysmal levels of 74.3 kg which is one-third of the world average of 229 kg.
While a country like China with a population of 140 crores and much more developed than India produces more than 1000 million tonnes of crude steel (56% of the world production) with per capita consumption of 633 kg, on the other hand, India with a population of 130 crores produces about 100 million tonnes of crude steel. Similarly, Japan with a population of only 30 crores produces close to 100 million tonnes of crude steel with a per capita consumption of 498 kg.
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