Measures to boost domestic stainless steel production
17 January 2020
To augment domestic manufacturing, the domestic stainless steel industry body, Indian Stainless Steel Development Association (ISSDA), has recommended some curative measures to the government ahead of the Union budget 2020. In its recommendation submitted to the Ministry of Finance, ISSDA has sought nil duty on import of key raw materials, including ferro-nickel and stainless steel scrap, which are not available in the country and must necessarily be imported. The association has further suggested a simultaneous imposition of 12.5% custom duty on stainless steel flat product imports to bring it at par with carbon steel. ISSDA has also sought the abolition of 7.5% import duty on graphite electrodes as it constitutes a major raw material for stainless steel manufacturing. On the other hand, the association has suggested that a minimum export duty of 20% should be imposed on graphite electrodes, thus ensuring priority treatment and availability for domestic customers. These measures are expected to boost domestic stainless steel production and protect Indian manufacturers who are currently facing the dual challenge of excessive dumping by other major stainless steel producing countries like Indonesia, China, and other Free Trade Agreement (FTA) countries, and non-availability of key raw materials in the country.