The Union environment ministry’s notification requiring importers of brass scrap to register has not gone down well with brass traders and manufacturers.
Determined to regain its sheen, the Jamnagar brass parts industry is seeking policy changes from the government.
There are 5,000 brass making units in Jamnagar, more than 80 per cent of them in the small-scale category. Their total annual turnover is about Rs 2,000 crore and they employ more than 2.5 lakh persons.
India consumes about 100,000-150,000 tonnes of brass annually, of which about 70 per cent is imported.
“Brass is a very big industry in this region, but much development is (still) required. If the government supports us at the policy level, new development can take place. As of now, most of our energy is wasted in dealing with government officials on several policy issues. Both state and Central government should ease policies so that we can concentrate on our business,” said Jineshbhai Shah of Rajhans Impex.
Recently, the Union environment ministry issued a notification requiring traders and manufacturers to register for the import of brass scrap. Industry sources said that since the brass industry is a small-scale one, such registration seems unnecessary.
“Brass scrap is not harmful to the environment, so why should we register? The government says the move will help stop duty-stealing. But the pollution control board and environment department have no concern with this. We are going to meet Jairam Ramesh, minister of environment and forests, to sort out this issue,” said Ramjibhai Patel, president of Jamnagar Factory Owners Association.
Patel said the brass industry had just come out of recession and only government support can help it survive.
Similarly, Bharatbhai Dodhiya, a partner in Nyals Brass Products, said, “Government should give us relief in import duty on brass scrap, as the international market is fluctuating. Due to price instability, manufacturers have incurred losses several times. We take orders at a certain price and in no time the international prices change. This often leads to clients cancelling their orders.”
Jamnagar imports 95 per cent of scrap from Europe and America. A sharp increase in the value of the US dollar has also made Indian imports more expensive. Prior commitments mean that Indian importers have to pay much higher for their contracts, even though global prices have taken a big hit in recent days.
Adding that certain measures in banking policy could also help the industry, Dodhiya said, “Banking policy also should be changed for small-scale units in the industry here. Many units are upgrading their technology and if banks provide us loans at lower interest rates, the industry can grow a lot.”
