AIFI urges Centre to ban steel export or levy tax

Perturbed over the rising steel prices, the Association of Indian Forging Industry (AIFI) proposed the Central government to ban steel export or levy export duty in line with China, Taiwan, Korea and Japan.

Speaking to Business Standard, AIFI Representative and Guru Nanak Auto Enterprises CMD Jagdish Singh, said," Steel (Billet and Bar) prices in India have shot up 33 per cent in the last 3 months, crippling the industry mostly dependent on Indian steel for domestic sales and finished product exports."

It is worth mentioning that steel is the key input in forgings at 60-70 per cent of the input cost. Pig iron and steel scrap are the key input to castings.

Briefing the media at Jalandhar today, the AIFI, Bicycle, Handtools and Foundry Associations called for the policy makers' support to help keep the Indian forgings/castings industry stay competitive against increasing global competition.

According to AIFI, the increasing export of steel was fuelling the price rice and was also keeping India in the lower rungs of the value chain. They added that China on the other hand, has measures to encourage export of finished goods and has levied a 25 per cent export duty on billets and semis.