The Engineering Export Promotion Council (EEPC) has cautioned the government about "these measures spelling a death knell for millions of SME exporters who will have to bear the high cost of basic raw material while the benefit of the same would be reaped by the big corporates".
The body in a statement said that cost of SME players will rise by at least 15 per cent and this would make their products uncompetitive globally.
Recommendations of the DGS to impose safeguard duty should be rejected, it said, adding "or else, lakhs of jobs in the SMEs would be sacrificed for the sake of helping the large and powerful steel manufacturers".
Imports of flat-rolled products of iron and steel have fallen from USD 1.8 billion in 2012-13 to USD 1.4 billion in 2014-15, it added.